Economy, Business And Markets

354KT of Aluminum Produced Last Year

354KT of Aluminum Produced Last Year  354KT of Aluminum Produced Last Year

More than 354,000 metric tons of aluminum were produced over the past Iranian calendar year (ended March 20) by major producers across the country.

The Iranian Aluminium Company (Iralco), located in the central Markazi Province, produced 182,000 metric tons of aluminum ingots, IRNA quoted Iralco manager Hamidreza Badkoobei as saying.

Badkoobei described the figure as a record high throughout the company's 40-year history, saying one third of the production, or some 60,000 tons, were exported despite western sanctions (imposed on Iran over its nuclear energy program). The company is under direct sanctions from the European Union and has to barter its products for equipment and raw materials. According to Badkoobei, Iralco has obtained environmental standards and all the emissions from its three complexes are controlled by the standard organization and the department of environment.

He also referred to the implementation of a project to produce anodes, calling it a basic need for the industry. "To produce every kilogram of aluminum, 3 kilograms of anodes and 2 kilograms of alumina are required. Between 1.7 and 1.8 trillion rials worth of anodes are imported annually. Once our anode-manufacturing facility becomes operational, the aluminum sector will not have to spend that much money for anode imports", he added. The anode manufacturing facility will be inaugurated within the next two years.

He also said that Iralco has signed an agreement with an Indian supplier to import 200,000 tons of alumina per year. According to Badkoobei, Jajarm Alumina Complex in the North Khorasan Province produces 250,000 tons of the material, which is not enough for domestic needs.

Iralco was founded in 1967 with an output capacity of 60,000 tons per year but it later increased the capacity to 182,000 tons in 2009.

Meanwhile, another major aluminum producer in the country, Almahdi Hormozal Aluminum Company, produced more than 172,500 tons of ingots during the same period, indicating 3% growth compared to a year before. "The company is planning to produce 180,000 tons of ingots in the current year," Mehdi Qadami, the company's manager said. Almahdi Hormozal Aluminum Company, located in the southern Hormozgan Province, exports its products to Turkey, India, Italy, and Taiwan. The company was established in 1990 after a 1.5-billion-dollar investment to produce 110,000 tons of ingots. The development phases will enable the company to increase the output to 330,000 tons per year.

Iran is the 18th global producer of the strategic metal. Based on the 2025 Vision Plan, the aluminum sector is required to produce 1.5 million tons of ingots per annum. Iran's current production capacity is said to be around 475,000 tons but in order to make a giant leap in production within the next decade, the country has to overcome shortages including lack of raw materials, lack of stable electricity feed, and the absence of modern technology.