Iranian aluminum producers had an aggregate output of 275,716 tons of aluminum ingots during the last Iranian year that ended on March 19, 2020, which indicates an 8% decrease compared with last year's corresponding period, the Iranian Mines and Mining Industries Development and Renovation Organization's latest report shows.
Flagship producer Iran Aluminum Company (IRALCO) accounted for 177,348 tons of the total output, posting a 4% growth year-on-year.
It was followed by Hormozal Aluminum Company with 46,694 tons, down 40% YOY; Almahdi Aluminum Company with 42,059 tons, down 20% YOY; and Iran Alumina Company with 9,615 tons (no data on YOY changes).
Aluminum production during the month to March 19 stood at 29,050 tons to witness a rise of 76% YOY.
IRALCO produced 233,267 tons of alumina powder during nine months, down 2% YOY.
Alumina powder output during the month to March 19 amounted to 19,255 tons, down by 7% compared with last year’s similar period.
South Aluminum Corporation located in Lamerd, capital of Lamerd County, Fars Province, is expected to soon start the production of 100,000 tons of aluminum ingots per year. The production capacity is expected to reach 300,000 tons per year in a subsequent phase. The ultimate production capacity is to reach 1 million tons of aluminum ingots and billets per year. A total of about $1 billion have been invested in the company, having created 1,200 jobs.
The combined nominal capacity of Iran's aluminum producers, namely IRALCO located in Arak (Markazi Province), Almahdi in Bandar Abbas (Hormozgan Province), Hormozal also in Bandar Abbas and Jajarm Aluminum Complex located in Jajarm County (North Khorasan Province) stands at 468,000 tons per year.
IRALCO accounts for 175,000 tons of the total followed by Hormozal with 143,000 tons, Almahdi with 110,000 tons and Jajarm with 40,000 tons.
Jajarm Aluminum Complex became operational in July 2019 with an investment of $150 million, creating 400 direct and 1,600 indirect jobs.
According to Minister of Industries, Mining and Trade Reza Rahmani, Jajarm Aluminum Complex fulfills 30% of Iran’s domestic demand.
Currently, per capita aluminum consumption in the world is about 9 kilograms.
The US and Canada are the biggest aluminum consumers at present with a per capita consumption of 23 and 27 kilograms respectively.
Iran’s aluminum industry’s biggest challenge currently revolves around the supply of raw materials, including alumina and petroleum coke. Not having access to raw materials due to sanctions and also having to purchase them at prices much higher than the global rates are problems facing producers.
Connecting aluminum production units to railroads and exploring new bauxite mines in the country can help reduce production costs.
