Economy, Business And Markets

Copper Industry to Increase Production Capacity

Copper Industry to Increase Production Capacity
Copper Industry to Increase Production Capacity

The National Iranian Copper Industries Company has announced it would implement two major development plans which would add 300,000 tons to annual copper concentrates production capacity, reported Foolad News.

The development plans for the second phases of Sarcheshmeh and Songoon mines will kick off soon, said the NICICO general manager, Ahmad Moradalizadeh.

He added that the development plans are aimed at increasing annual copper cathodes production to 400,000 tons in four years from the current 200,000 tons.

A number of other smaller plans will also be implemented to add 80,000 tons to production capacity of the company.

NICICO is waiting for final approval by the Security Exchange Organization to become a holding company.

When raising capital, a larger holding company has more diversity of assets compared to an individual company, which makes raising capital easier. In addition, if the holding company loans the subsidiary company money, the holding company can secure the loan with the assets of the subsidiary, thereby creating a collateralized loan that makes the company prone to bankruptcy, said Moradalizadeh.

State-owned NICICO is responsible for extraction and utilization of copper mines across the country, production of copper concentrates and manufacturing copper products such as cathodes, slabs, billets and 8mm wire rods.

Sarcheshmeh Copper Complex is the country's biggest copper mine and is located 160 kilometers from the southeastern city of Kerman.