Iran to Add 336,000 Tons of Aluminum Capacity in 2018

Iran plans to add 336,000 tons of primary aluminum smelting capacity in 2018, the planning manager of state-owned mining holding company IMIDRO, Amir Sabagh, told S&P Global Platts.

“South Aluminum Company or Salco is building a 300,000-ton/year unit in Asaluyeh, a natural gas hub in Bushehr Province, which is expected to start production in late 2018,” he said.

That project is financed by China’s NFC, or China Nonferrous Metal Industry’s Foreign Engineering and Construction Company.

“Iran Alumina Company, or IRALCO, is also boosting its aluminum capacity in the Jajarm region by 36,000 tons/year in 2018,” he said.

Iran has a current aluminum nameplate capacity of 457,000 tons/year, of which about 437,000 tons/year are operational. IRALCO can produce 220,000 tons/year and Almahdi Hormozal Aluminum Company 237,000 tons/year. Both have some idled capacity due to issues with pollution.

The country’s only alumina plant is a 250,000-ton/year unit in Jajarm owned by IRAL Company.

IMIDRO is discussing with Chinese interests a 2-million-ton/year alumina project in Asaluyeh, for which no timeline has been announced. The plant is expected to use bauxite from Conakry in Guinea.

Iran has an agreement to import 4 million tons/year of bauxite from Guinea until 2040.

In the first five months of the current Iranian year (ending Aug. 22), Iran produced 101,520 tons of alumina and 128,679 tons of aluminum, and imported 201,122 tons of alumina and 8,299 tons of bauxite, according to data from the customs office.