The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) and the People’s Republic of China’s Sinosteel Corporation signed a Memorandum of Understanding (MOU) last week to implement three aluminium projects in the Islamic Republic of Iran.
Per the MOU, Sinosteel Equipment and Engineering Co. LTD, one of Sinosteel’s specialized companies, will build three plants in Iran, one alumina factory capable of producing 1.6 million metric tons per annum, an aluminium smelter with a nameplate capacity of 350,000 metric tons of aluminium ingots, plus a power plant producing 1000 mW to provide energy for the first two plants.
Sinosteel CEO Huang Jian spoke of his firm and his country’s willingness to work with Iran in the post-sanction landscape, saying, “We used to cooperate with some large Iranian steel producing companies in the past and now we are boosting our relations with Iran.”
The president of Sinosteel Company, Huang Tianwen, explained that “previously, we had cooperation with major Iranian steel companies and we are trying to expand relations now.”
“Chinese banks’ support of these plans would be regarded as a factor of timely implementation of plans and fulfillment of commitments,” said Mahdi Karbasian, Chairman of IMIDRO’s Executive Board.
The alumina refinery and the aluminium smelter are planned to be funded and built as an EPCF (Engineering, Procurement, Construction, and Finance) or joint venture. The power plant will be built through direct investment using the BOO (Build, Own, and Operate) project model.
Trade deals with Iran have become more attractive in recent weeks and months thanks to the Joint Comprehensive Plan of Action (JCPOA), a presumably long-term nuclear deal between Tehran and the Group 5+1 (Russia, China, the United States, Great Britain, France and Germany) that ended nuclear-related sanctions against Iran when it came into force in January of this year.