China’s Sinosteel Corporation has inked a Memorandum of Understanding (MoU) with Iranian Mines & Mining Industries Development & Renovation, known as IMIDRO, to implement three projects in Iran’s aluminum industry.
Based on the MoU, Sinosteel Equipment and Engineering Co. LTD, one of Sinosteel’s specialized companies, will implement three projects, including a plan for production of alumina powder, another for aluminum ingots, and a third one for construction of a power plant (to supply power for these factories).
The production capacity of the alumina factory will be 1.6 million tons; the second factory will produce 350,000 tons of aluminum ingots; and the combined cycle power plant will generate 1000 MW of electricity.
The two aluminum factory projects will be implemented in the form of EPCF (Engineering, Procurement, Construction, and Finance) or joint venture.
The power plant, however, will be constructed through direct investment using the BOO (Build, Own, and Operate) project model.
Sinosteel and IMIDRO are also planned to assign a working group in a bid to set the grounds for implementation of the MoU, and to implement the second phase of the plan (aimed at doubling the production capacity) once the first phase is implemented.
Before signing the MoU, the Sinosteel CEO Huang Jian expressed his country and his company’s willingness to boost cooperation with Iran in the post-sanctions era.
Mahdi Karbasian, Chairman of IMIDRO’s Executive Board, also welcomed Sinosteel’s investment in Iran, and urged the implementation of the projects based on modern environmental standards and up-to-date technologies.
There has been growing enthusiasm for closer trade ties with Iran and investment in the country after implementation of the JCPOA, a lasting nuclear deal between Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) that terminated all nuclear-related anti-Iran sanctions after coming into force in January.