1. www.irannovation.com Rubin Pajoohan Fartak co. International Engeenering

2.  What are minerals?  Why is mining important?  Geography of mining  Demand for minerals  Reserves and resources www.irannovation.com

3.  Metals are chemical elements that conduct electricity.  In nature, they occur in the form of minerals, which are chemical compounds containing metals and with specific chemical and physical characteristics.  Minerals occurring in sufficient quantity and grade to be economically exploitable are called ores. www.irannovation.com

4. www.irannovation.com

5.  Aluminium: T ransport, packaging, construction, high tension power lines  Copper: Electrical conductors, construction, transport  Gold: Investment, jewellery, electronics  Lead: Batteries, pigments, ammunition, radiation shielding  Nickel: Stainless steels, electroplating  Platinum: Jewellery, catalysts  Silver: Electronics, sterlingware  Tin: Tinplate in packaging, solder, pigments  Zinc: Galvanizing, brass and bronze www.irannovation.com

6. MetalShare in total value of metallic mineral production % (estimates) Volume of output (metal content in kilotonnes) Iron ore21.9800 000 Copper18.016 900 Gold13.53 Nickel4.91 300 Zinc3.410 300 Bauxite1.531 000 Others36.8.. All metals100.0.. www.irannovation.com

7.  Around twenty developing countries depend on mining for more than half their export income – and the number is increasing  Ease of entry into mining  No need to mobilize domestic capital  Easy access to technology  No need for government financed infrastructure  Easy market access  Transparent and simple standards  Minimal need for marketing  Scale of revenues  The world’s largest mines generated annual sales of more than US$ 12 billion, annual profits of more than US$ 8 billion in 2006-2007  Governments can easily appropriate rents www.irannovation.com

8. www.irannovation.com

9. YEAR 2005 TOTAL ~ 910 billion USD Source: Raw Materials Group, Stockholm 2006. www.irannovation.com

10. YEAR 2005 TOTAL ~ 250 billion USD www.irannovation.com

11. www.irannovation.com

12. GLOBAL MINING – GEOGRAPHY 1990

13. 1. China 10.1%

14. www.irannovation.com

15. % of total value of non-fuel mineral productionat the mine stage www.irannovation.com

16. www.irannovation.com

17.  Asian minerals and metals demand has grown very rapidly and Asian countries have accounted for almost all of the increase in demand over the past five years  China is now the world’s largest steel producer, steel consumer, steel exporter and iron ore importer, the world’s third largest iron ore producer and the third largest steel importer  Metals use per capita is still very low in countries such as China and India, but they are still at a stage where metals consumption relative to GDP is rising and large populations make them more than significant forces on the market www.irannovation.com

18. www.irannovation.com

19.  Demand will continue to be strongly linked to Asian growth and high rates of increase are expected  Once the recovery from the recession is completed, capacity is expected to just keep up with growth in demand in the long term (next 8-10 years)  A large share of output growth will take place in developing countries (Africa and Latin America), where there is now strong investor and exploration interest www.irannovation.com

20. MetalShare of value added, % Gold100 Platinum Group Metals100 Tin83 Copper77 Lead77 Nickel70 Zinc63 Cobalt33 Bauxite/aluminium9 www.irannovation.com

22. www.irannovation.com

23. www.irannovation.com

24. ReservesResource base Aluminium811065 Copper22736 Iron65886 Lead17607 Nickel30526 Silver15731 Tin28759 Zinc20778 www.irannovation.com

25. ASSUMPTIONS  Metals use has increased by 5 % annually in the past and continues to do so until year 5;  from year 6 to year 15, metals use grows at an annual rate of 20 %;  from year 16 to year 24 it grows at 10 %;  from year 25 to 35 it is constant;  from year 36 onwards it declines by 2 % per year  The average life of metal containing products is 15 years  67 % of the metal in a product can be recycled.

26.  Hotelling: Mineral prices should rise at the same annual rate as the rate of interest – if the price increase is lower, then more should be produced, if higher, resources should be left in the ground  However, technology changes and new resources are discovered  Over most of human history, real mineral prices have declined – technological progress has offset depletion  Is the trend about to change? www.irannovation.com