Outotec has won an order from Bafgh Mineral Complex Iron and Steel Industry Company (B-MISCO) for the design and delivery of technology and services for a new iron ore pelletizing plant in Bafgh, Yazd Province, Iran. The parties have agreed to not disclose the contract value, but typically such plant solutions are valued EUR 80 – 100 million, depending on scope and specification. Less than EUR 10 million has been booked in Outotec’s second quarter of 2015 order intake, and the revenues will be recognized gradually during 2015-2018.
The new 5 million tonnes per annum pellet plant is part of B-MISCO’s greenfield investment program. Outotec’s scope covers the technology license, basic engineering of the pelletizing plant, detailed engineering and supply of proprietary and key equipment and automation, as well as advisory site services for installation, commissioning and start-up. The new plant is expected to become operational in 2018.
Prior to finalizing the deal, Outotec has applied for all the relevant export approvals from export control authorities and has received all of the necessary permits to ensure that the envisaged technology delivery does not collide with the existing regulations. In anticipation of possible future changes in the regulatory framework, the order will be booked in Outotec’s order backlog gradually during 2015-2018 according to each year’s overall progress of the project.
“Outotec’s pelletizing technology was selected due to its ability to process a wide range of iron ores, and our strong track record globally and in Iran. Our technologies are widely used in the Iranian iron ore and copper operations, as Outotec has delivered sustainable technologies to Iran since 1970s. We are also currently executing several other projects in Iran”, says Adel Hattab, head of Outotec’s EMEA region.
Outotec provides leading technologies and services for the Sustainable use of Earth’s natural resources. As the global leader in minerals and metals processing technology, we have developed many breakthrough technologies over the decades for our customers in metals and mining industry. We also provide innovative solutions for industrial water treatment, the utilization of alternative energy sources and the chemical industry. Outotec shares are listed on NASDAQ OMX Helsinki. www.outotec.com