A total of 42.92 million tons of minerals were extracted from Sarcheshmeh Copper Mine Complex during the first six months of the current fiscal year (March 21-Sept. 22), 14% more than in the corresponding period of last year, according to the CEO of the mine complex, Hossein Ahmadi.
The output of copper concentrate hit 353,093 tons during the period while that of cathode stood at 87,000 tons, ILNA reported.
Sarcheshmeh Copper Complex is the world’s second largest open-pit copper mine located in Kerman Province. It also contains substantial amounts of molybdenum, gold and other rare metals.
The complex is located 65 km southwest of Kerman and 50 km south of Rafsanjan. Sarcheshmeh ore bodies, situated in the central part of Zagros ranges, consist of folded and faulted early tertiary volcano-sedimentary rocks.
The production sites of Sarcheshmeh Copper Complex involve the mine as well as its concentrator, smelter, refinery, foundries and leaching units.
The state-owned mine is run by the National Iranian Copper Industry Company — a leading copper producer in the Middle East and North Africa region whose mines hold close to 14% of Asia’s copper deposits and about 3% of global reserves.
NICICO’s sales stood at 419,516 billion rials ($1.32 billion) from the beginning of the current Iranian year on March 21 to Sept. 17, registering a 19% year-on-year rise, according to CEO Ali Rostami.
He noted that NICICO produced 596,227 tons of copper concentrate during the period to register a 7% rise compared with last year’s corresponding period, Fars News Agency reported.
“While the global price of copper has dropped by 25%, we are still 26% ahead of our strategic plans in terms of domestic and foreign sales. And despite frequent power outages and fluctuations in foreign currency rates, and the fact that NICICO implemented overhaul repairs of the complexes in the fourth [June 22-July 22] and fifth [July 23-Aug. 22] months of the current year, we managed to achieve a unique performance and unprecedented records,” he said.
The functions of NICICO include, among others, extraction and operation of copper mines, as well as production of high-grade copper products such as cathode, slab, billet and 8-mm wires.
Sarcheshmeh as well as Miduk in Kerman, and Sungun in East Azarbaijan are among the most important copper mines of the country.
Iran holds about 4 billion tons of estimated copper reserves, according to the Geological Survey of Iran.
According to the United States Geological Survey, Iran holds the world's ninth largest copper reserves.
Sungun Complex, located in East Azarbaijan Province, is Iran’s largest copper mine with 1.5 billion tons of identified reserves. These reserves were estimated at 320 million tons three to four years ago, but currently they have risen to 2 billion tons, of which 1.3 billion tons are deemed “economically viable”, the former head of NICICO, Ardeshir Sa’d-Mohammadi, had said in 2022.
According to the Majlis Industries and Mines Commission, the value of Sungun copper mine reserves stands at $320 billion, equivalent to 10 years of Iran's exports.
At the current rate, copper extraction from the Sungun mine will last 380 years and even if the current annual production of 300,000 tons of concentrate triples, it will take 130 years to complete extraction from the mine reserves, it added.
Promising Future in World Economy
Thanks to the strategic importance of copper in the future of the world economy, investment in the industry has a bright outlook, Sa’d-Mohammadi said.
"Presently, electricity accounts for 21% of world energy consumption. This share will increase to 51% in 2050 and the most important element in this strategy is copper,” he was quoted as saying by IRNA.
Copper is an industrial base metal essential for global growth because of its excellent electrical conductivity. It is vital for the transition to sustainable sources of energy to ensure a clean and green future, and for the promotion of digitalization, according to London-based research group Acuity Knowledge Partners.
“In the next 10 years, at least 35% of the world's vehicles will be electric. Considering the average consumption of 4 kg of copper in ordinary vehicles and 89 kg in electric vehicles, we will see a change in demand for copper in cars in the near future,” the former NICICO chief said.
Acuity Knowledge Partners estimates that EVs will generate additional copper demand of 1.5 million tons in 2025 and 3.3 million tons (forecast to be 10% of total demand) by 2030 versus less than 500 kilotons in 2020. China, the world’s biggest auto market, expects EVs to account for 60% of vehicle sales by 2035. The US expects them to account for 50% of vehicle sales by 2030. The number of EVs is forecast to reach 7 million by 2025, requiring 5 million charging ports to support them.
Sa’d-Mohammadi noted that it is predicted that by 2035, 1.3 billion people will be added to the world's population and even with the current per capita consumption of copper, which is 3.2 kg, the world will face an increasing demand for copper that year due to population growth.
The official also pointed to the increasing use of renewable energy in the world, which will be accompanied by an increase in copper consumption.
He referred to the annual investment of $4 trillion in infrastructure, including roads, airports, railroads and electricity, all of which require copper.
“In 2021, 98% of copper companies were profitable, so the outlook for this element will be quite logical and profitable.”
