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Mineral Potential of Iraq
& How to Approach it
To
AIG Members
18th June2014
Perth, Australia
Presenter
Wilson Gewargis(MAIG)
Managing Director
Agenda
Opening Remarks
Previous works & Geological Setting
Iraq Minerogenic-North Mountain- Kurdistan
Region
Iraq Minerogenic- Western Desert Region
Mining Act & Policies
How to Approach & Success
Q&A
Opening Remarks
Sep 2011-London Conference On Strategy for Creating
World class Mining in Iraq
Objectives

To discuss privatization and develop opportunities in the mining, mineral and material
industries.

To exhibit and to extend business links with all industries related to mining, minerals, and
materials in order to explore their suitability for revitalizing the industries in Iraq.

To find the best solution for business to work in Iraq and resolve problems, if any, through
direct talks with the Minister, Senior Advisors or Director Generals of the relevant industry.

To develop networks as well as business cooperation and collaboration between
governments, local industries, bankers, investors and their international counterparts
Attendees:
Minister of Industry and Minerals, National Investment Commission , Head of PM Advisory
Committee, Senior Advisor to Ministry of Industry and Minerals, Director General, Geosurv Iraq,
Ministry of Industry and Minerals
Location
Trend in global economic risks
Greater Russia region
2.4%
North American region
Europe region
0.9%
1000
1.2%
1,500
500
1000
0
1,000
Middle East region
500
500
2020
2050
0.8%
0
2008
2008
2020
2020
1500
2050
2050
1000
Latin America & the
Caribbean region
African region
500
1.8%
Asia pacific region
0
2008
0.9%
2020
2050
1.2%
600
2500
800
400
2000
1500
600
Legend
400
200
Production (Mn tonnes)
200
0
1000
500
2008
0
Consumption (Mn
tonnes)
2008
2008
2020
2050
Compounded annual
growth rate
consumption
Source: Energy Policy Scenarios to 2050, World Energy Council
(values in mn tonnes)
2020
2050
0
2008
2020
2050
Where are we going?
Investor Attention
Iraq government
Iraq is seen as a
Generous
supportive
country with high
incentives for
bureaucracy,
levels work force foreign investors
constructive
market efficiency
such as:
labour legislation, to support mining
10 yrs tax
and reduced
and resource
exemption
crimes are most
project with
significant sign of excellent existing Repatriation of
profit from
doing business in
infrastructure
investors
Iraq
3yrs tax
exemption from
import fee
GOI (Government
of Iraq) has
publicly stated
commitment to
attract foreign
investment and
has taken several
steps to improve
its investment
climate
National
Investment Law
(NIL) passed in
2006 provides a
baseline for
modern legal
structure to
protect foreign
and domestic
investors.
In addition to
providing tax and
other incentives
National
investment
Commission
(NIC) and the
Provincial
Investment
Commissions
(PICs) are
designed to be
one-stop-shops
that can provide
information, sign
contracts and
facilitate
registration for
new foreign and
domestic
investors
Previous work
Groups:
1920- reconnaissance work was conducted which
lead to the discovery oil in Iraq & exploration for
minerals resources and industrial rocks started in
early 1930
1954- an ambitious program for metallic & industrial
minerals exploration was carried out by foreign and
Iraqi geologists and key stratigraphy established in
1959
1961- mineral exploration conducted by the old
soviet Union Companies
Site Investigation Co. ( UK) : 19401958
Techno export (former USSR) : 19581965
Geological Survey of Iraq: 1965-2007
Polytechna ( CGS) : 1978-1980
1964- the Iraq National Oil company (INOC) was
established and start with Seismic Survey and
drilling.
1965- the geological survey of Iraq was established
and initial task was systematically cover the
country with regional survey on scale 1: 100,000
1972-1982- mapping program for Phosphate,
Sulphur, Bauxite, Glass sand was completed by
young Iraqi geologists.
Bulgar Geomin : 1975-1978
Geozavod (former Yougoslavia ):
1980-1982
Geological Setting
Iraq lies in the NE corner of the Arabian Peninsula, near the center of
the so called “ Fertile Crescent” it is a land of contrasting geography
within arid desert in the west and rugged mountains of Taurus and
Zagros in NE and separated by central depression of Mesopotania
In geological terms Iraq lies at the transition between the Arabian
Shelf in the west and intensely deformed Taurus and Zagors Suture
zones in the NW and SE
The tectonic frame work of Iraq as been affected by the evolution of
the Arabian Shelf to west and the NEO Tethyan margin to the north
The geological structural frame works of Iraq is divided into the
Thrust Zone to the North , Fold zone to the Mesopotamia Plain to the
nnorthwest and unfold zone covering the western desert
Geological Setting-contd
The geological and structural
development provided
favorable conditions of
formation of various types of
mineral deposits and
industrial rocks in Iraq
 Non–metallic sedimentary
type developed in various
rock units of the Arabian
Platform(Western deserts)
 Igneous, metamorphic and
hydrothermal deposits
(including metallic ores.)
are mainly found in the
Zagros Suture Zones .
Iraq Minerogenic
Iraq Minerogenic-North Kurdistan
Copper
 In the Zagros Suture
Zones mostly of
hydrothermal origin,
associated with igneous
rocks of basic and
ultrabasic composition.
 Some of them part of
the Meditteranean Cubelt related to
ophiolites.
 Most of the occurrences
are found in Mawat
Massif.
 Hydrothermal origin
 Mafic / Ultramafic
with Ni grade upto
1% Cu
 Qtz vein
 Copper vein
carbonates rocks
 Volcanic/ sediment
seq 0.1-3.4% Cu
 Sedimentary origin
 Grab sample up to
11.8% Cu
Zinc / Lead
 Zn-Pb deposits, strata– bound and vein types are found
in the Northern Thrust Zone of Kurdstan.
 They are Jurassic and Cretaceous in age associated with
carbonate rocks occasionally with barite and pyrite
Cr / Ni
 Found in the basic and
ultrabasic igneous
complexes of the Zagros
Suture Zones, especially
in Mawat
Fe / Mn
 Metamorphic magnetite
deposits are found in the
Qandil Series (Cretaceous) in
Penjween, Asnawa and
Mishau( Kurdistan )
 Moreover, ferromangnese
nodules and lenses are found
in the Qulqula Series
(Jurrassic – Cretaceous) in
various localities in
Kurdistan.
 They are believed to be of
submarine volcano –
sedimentary origin.
Barite
 Found in the Northern
Thrust Zone of
Kurdistan, mostly
associated with Zn-Pb
deposits.
Iraq Minerogenic-Western Desert
Quartz Sand(100km extent~99% Qtz)
 Silicon is the second most
common element in the earth’s
crust, where it occurs in the form
of oxides and silicates. 75 Millions
of tonnes of metallurgic silicon
are produced from quartz sand
 High purity quartz–sand are
found in the Gaoara formation
(Permocarboniferous), Nahr-Umr
and Rutba formations
(Cretaceous ) in the Western
Desert important raw material for
solar energy panel making.
 850 million tonnes approximate
resources exist
Native Sulphur& Phosphorite
 60% sulphur of which extractable
by frash method) is found in
Middle Miocene Fatha formation in
Mishrak Field near Mosul. To a
depth of 100m thickness. 600m
tonnes of native sulphur.
 More than 10 billion ton
phosphorite of proved reserves
are found in the Western Desert,
mostly in the Paleocene Akashat
Formation.
 Average grade is 20-25% P2O5.
Annual production did not exceed
2 m.t. and totally used in fertilizers
industry
Gypsum, Lime st & Dolomite
130 mt reserve
Building industry
8 billion ton reserve
Cement industry
330 mt reserve
Brick industry
Others
Mineral
Reserve
Industry
 Quartzite
16mt
Silicon industry
 Feldspathic sst
2.3mt
Ceramic industry
 Heavy minerals
Zircon, Rutile etc
Rare earth
 Kaolinite clay
1200mt
Alumina production
 Bauxite-karst type deposit
 Iron stone
Refractories industry
60mt
All these figures are thought to be conservative
Cement industry
Mining Act & Policies

Mineral Act Law 91/1988 established in year 98 then revised in 2003 which give more
privileges to investors(Inv law 13/2006 benefits and guarantees for investors)

The above law deals with areas allocated for mining and exploration( size, fees ,
grant period , condition& cancellation policies and prog of work )

The law is administrated by Min of Industries through the GEOSURV

Negotiation for any concession or license has to be National investment
Commission (NIC) and the Provincial Investment Commissions (PICs)

Foreign investors required to establish or register a company in Iraq to apply and
operate

Foreign investors are encouraged to operate with Iraqi investors on JV / Partner
basis

The GIO offer a great incentive through tax and other means for foreign investors
that needed to invest in Iraq not just to explore mineral but be part of nation
rebuilding
How to Approach & Success

Investor should have a creative vision and plan of understanding and how
to operate in country like Iraq

Understand the min potential of Iraq ( Target and specific commodity)

Take the advantage of GIO offering for investors

Finding a good Iraqi Partner for speeding and assisting in the project
progress and development

Iraq need western technology and expertise to develop their huge
unexplored mineral resources therefore the expat technical team should be
familiar with custom and work environment in Iraq

Time factor
Recap and Why Iraq

Strategic location in middle east . Makes it country well position for trade & investment

High diversity of metallic and non metallic mineral deposits in addition to oil & gas

Large reserves and good govt mining support (trained labor, equipment, energy and infrastructure)

Widespread market with high demand percentage for multiple industrial use


Cement and Construction

Drilling mud

Filter aids

Fertilizer and Chemical

Glass and Ceramic

Refractories

As raw material for local and export

Solar energy
Virgin land for investment in all economic sectors because of the massive need of countrys
rebuilding

Political support and marketing possibilities for Investors

Encouraging investment legislations
Conclusion
Apart from the challenging risk environment that exist today, the GIO
striving to overcome all these obstacle and to attract western investors
to be a part of mining and mineral green revolution in which started in
Iraq
Iraq has excellent infrastructure(upgrading in progress), low energy
and labor costs. Excellent trained labor and technical team supported
with existing data, maps that will make easier to identify and develop
these mineral resource projects.
The strategic location in the middle east to supply these resources to
high demand countries in the region, GDP growth, huge metallic and
industrial mineral resource existence make the nation attractive for the
western investors for now and near future
QA
Thank you for your
attention !
Phone:08-9407 9243
www.minquestconsultants.com
[email protected]