Subsidiaries of the Iranian Mines and Mining Industries Development and Renovation Organization produced 528,060 tons of aluminum ingots during the current Iranian year’s first 10 months (March 21, 2022-Jan. 20) to register a 17% year-on-year rise in output, a new IMIDRO report shows.
IMIDRO is the biggest state-owned mining holding in Iran.
South Aluminum Company (SALCO) accounted for the highest share of the total output with 226,467 tons.
“Just four years after it was established in the southern province of Fars, SALCO has surpassed all other Iranian aluminum smelters in terms of output. The findings come as Iran pushes to escalate investment in its mining and metals industries to diversify its economy away from oil earnings and increase employment opportunities for the young generation,” AlCircle reported.
SALCO was followed by Iran Aluminum Company with 147,560 tons, Almahdi Aluminum Company with 123,403 tons and Iran Alumina Company with 30,630 tons.
A total of 190,782 tons of alumina powder were produced by Iran Alumina Company during the 10-month period, the sole producer of alumina powder in Iran. The figure marked a 1% year-on-year fall.
Iran Alumina Company produced 464,622 tons of bauxite (raw material for the production of alumina powder) during the period.
According to Shahriar Taherpour, a former managing director of IMIDRO, Iran’s per capita aluminum consumption has been around 4.5 kilograms over the past 10 years against the global average of 9 kilograms.
The Iranian aluminum industry’s biggest challenge currently revolves around supplying raw materials, including alumina and petroleum coke.
Lack of access to raw materials due to sanctions, which are priced much higher than global rates, is posing problems for producers.
Boosting Alumina Production With Chinese Assistance
Iran has begun researching the possibility of producing 500,000 tons of alumina annually from low-grade bauxite with Chinese assistance.
On Jan. 23, 2023, Turaj Zar'e, the managing director of Iran Alumni Company, said the initial phase of studies was done with the Chinese, and “we are conducting the second phase of the studies".
He claimed that once the goal is met, Iran will be self-sufficient in alumina.
"80 per cent of Iran's demand for alumina is met with imports which cost the country $1 billion a year", the MD was quoted by AlCircle as saying.
According to Zar'e, the country's bauxite resources could be of better quality, as they are currently unsuitable for alumina powder production.
Iran's most remarkable bauxite deposit is located in the northeastern province of North Khorasan, on the edge of the desert.
NFC, or China Nonferrous Metal Industry's Foreign Engineering and Construction Company, has been collaborating with IAC and providing it with equipment.
In July 2019, the first phase of the Jajarm refinery began operations with a capacity of 40,000 tons of alumina per year.
The operation was carried out when the US reinstated its secondary sanctions against Iranian steel, aluminum, gold and precious metals, graphite and coal to stifle the nation's revenue streams.
The Jajarm alumina refinery was constructed to reach a plateau of 280,000 tons of production annually.
Growth in Global Market
According to the latest report by market research group IMARC, the global aluminum market exhibited moderate growth during 2015-20 and is expected to grow at a compound annual growth rate of around 5% during 2021-26.
The increasing usage of aluminum in different industries, such as construction, packaging and automotive, across the world is primarily driving the aluminum market.
As aluminum is extensively utilized in the manufacture of disposable cans, the escalating demand for ready-to-eat food items and beverages is further boosting market growth.
Additionally, aluminum finds wider applications in pharmaceutical packaging, as it creates a barrier against moisture, light, air, etc., ensuring a long shelf life for the product. This, in turn, fuels the aluminum market in the coming years.
