The Forum for Partners in Iran's Marketplace

June 2018, No. 87


Investing $6 Billion for Producing 1.5 Million Tons of Aluminum

Addressing the opening ceremony of the fifth Iran International Aluminum Conference and Exhibition, Vice President of the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), Ardeshir Saad Mohammadi said: “Aluminum industry has already attracted an investment of about $2.5 billion, but according to IMIDRO plans, the volume will reach about $6 billion. He further noted: “According to plans formulated by IMIDRO, we are supposed to bring the aluminum capacity to 1.5 million tons a year.”

He added: “Fortunately, aluminum is used by the industry in the mining sector as well as in the medical equipment industry. Explosive detonator pockets used mines are made of aluminum.” He also stated that the EU has designated 20 elements as strategic elements that include aluminum. In 2016, the global production of this metal was 58 million tons, and reached 64 million tons in 2017. There are talks to increase the volume to over 68 million tons in 2018 and plans to raise the output to 88 million tons in 2025.

The IMIDRO VP said that according to the latest forecasts, per capita consumption of aluminum in Iran will be increased to 10kg in 2025, which means annual per capita consumption will stand at 540,000 tons. “South Aluminum Company (SALCO) is one of the development projects with a total investment of $1.2 billion,” he said, referring to the development plans underway in the field of aluminum. The project has had 48 per cent physical progress, and its first phase will be commissioned with an output of 300 thousand tons in early 1398 (the calendar year 1398 starts on March 21, 2019).

Jajarm aluminum project too will be launched with a capacity of 40 thousand tons, he said, adding: “Until next year, we will raise the aluminum production capacity in the country to 800 thousand tons. We also plan to hit a record of 1.5 million tons in the next few years.” He noted: “The aluminum sphere should be expanded in all its dimensions, one of which is the training of specialist work force.”

Saad Mohammadi noted: “Some 340,000 tons of aluminum was produced in the country last year. In Jajarm in the last calendar year (1396), some 240,000 tons of alumina powder was produced. It’s a must to launch an alumina powder plant.

We are looking to establish an alumina powder plant with a capacity of 800,000 tons along with SACO, which needs an investment of 600 million euros.”

Also, a 160,000-ton factory is required to produce flat aluminum within the plans to develop downstream industries, he noted.

He said a Coke Petroleum Project is also on the agenda with an investment of €850 million and “we hope to find a good investor for it.”

The IMIDRO official said the total proven bauxite reserves in the world are 28 billion tons, but the potential reserves are estimated at 60 billion tons.

“So far, more than 30 companies have announced their readiness to participate in Guinea’s bauxite tender, but I must say that we have bauxite deposits in the country at present, and we need to carry out more robust bauxite explorations in the country.”

In the meantime, IMIDRO has new plans to explore the bauxite deposits in the new calendar year, he said, noting: “For example, United Company of Rusal, one of the world’s largest aluminum producers, takes 24 to 26 percent alumina from nepheline syenite, but it should be noted that Iran’s nepheline syenite is 18 percent.”

Noting that there is good consumption market for aluminum, he said: “We can consider Turkey as one of the target markets for aluminum exports.”


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  June 2018
No. 87