Iranian aluminum producers had an aggregate output of 101,195 tons of aluminum ingots during the first three months of the current Iranian year (March 20-June 20) to register a 63% rise compared with the corresponding period of last year.
According to the latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), flagship producer Iran Aluminum Company (IRALCO) accounted for the highest volume of the total output with 48,086, posting a 5% rise year-on-year.
IRALCO is the top producer of aluminum in Iran. The plant, inaugurated in 1972, has an annual production capacity of 180,000.
It was followed by Hormozal Aluminum Company with 21,791 tons, up 179% YOY; Almahdi Aluminum Company with 18,188 tons, up 146% YOY; South Aluminum Company (SALCO) with 8,103 tons, registering no significant change YOY and Iran Alumina Company with 5,027 tons, showing a 499% upsurge.
The overall output during the month to June 20 amounted to 36,025 tons, indicating a 73% rise YOY.
Iran Alumina Company produced 62,789 tons of alumina powder during the three-month period, up 2% compared with the similar period of last year.
The company’s output of alumina powder totaled 21,089 during the month ending June 20, to register a 6% fall YOY.
New Plant to Give Major Boost to Production
SALCO, located in the city of Lamerd, Fars Province, was inaugurated in April.
“The project will boost Iran’s aluminum production capacity to 785,000 tons per year once all its development phases come on stream,” according to former industries minister, Reza Rahmani.
The factory has come with a price tag of $1.2 billion, he said at the inaugural ceremony.
"Cutting-edge technology has been incorporated into the project and the development of the project is in line with environmental concerns," the former minister was quoted as saying.
Once fully operational, SALCO will create 6,500 direct and indirect jobs, Fars News Agency reported.
The company’s shares are owned by two companies. Ghadir Investment Company owns 51% and IMIDRO owns the rest.
The factory is set to produce a range of aluminum products, including sheets, profiles, ingots, doors, windows, composites as well as nuts and bolts.
Rahmani told IRIB News that Iran is currently the world’s 18th biggest aluminum producer and with the opening of this project as well as Jajarm Aluminum Complex located in Jajarm County (North Khorasan Province), which came on stream a few months before, the ranking will ascend to the 14th place.
Jajarm Aluminum Complex became operational in July 2019 with an investment of about $150 million, creating 400 direct and 1,600 indirect jobs.
SALCO will start 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 final production capacity is to reach 1 million tons of aluminum ingots and billets per year.
SALCO intends to become Iran’s biggest aluminum producer and the fourth major producer in the Middle East.
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, IMIDRO's latest report shows.
The combined nominal capacity of Iran Aluminum Company (IRALCO) located in Arak (Markazi Province), Almahdi Aluminum Company located in Bandar Abbas (Hormozgan Province), Hormozal Aluminum Company also in Bandar Abbas and Jajarm Aluminum Complex 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.
According to Shahriar Taherpour, a former managing director of the Industrial Development and Renovation Organization, Iran’s per capita aluminum consumption has been around 4.5 kilograms over the past 10 years.
Currently, per capita aluminum consumption in the world is about 9 kilograms.
The US and Canada are the biggest aluminum consumers in the world at present with a per capita consumption rate of 23 and 27 kilograms respectively.
The Iranian aluminum industry’s biggest challenge currently revolves around supplying 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 global rates are the problems facing producers.
Connecting aluminum production units to railroads and exploring new bauxite mines in the country can help reduce costs in this industry.
