A contract has been signed worth 80,000 billion rials ($294 million) for the annual production of 100,000 tons of copper cathode in Sungun Varzeqan Copper Complex, located in East Azarbaijan, between the National Iranian Copper Industries Company and Khatam Al-Anbia Construction Headquarters.
The project has the capacity to create direct employment for 500 people and indirect employment for 3,000, IRNA reported.
Sungun Complex is a subsidiary of NICICO and Khatam Al-Anbia is a major conglomerate in Iran.
“Sungun copper reserves have increased by 523 million tons in the past two years,” managing director of NICICO was quoted as saying by IRNA.
According to Ardeshir Sa’ad Mohammadi, Sungun copper 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 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 thoroughly extract the mine reserves.
Sa’ad Mohammadi added that investments in Sungun copper mine will exceed 350,000 billion rials ($1.29 billion) in the near future.
“We have purchased 15 modern drilling rigs that will enter Iran in the next three months, of which five will be installed in the Sungun copper mine.
Sungun is Iran’s largest copper mine with 1.5 billion tons of known reserves.
Latest data released by the Iranian Mines and Mining Industries Development and Renovation Organization show domestic production of copper cathode hit 75,579 tons in the first quarter of the current Iranian year (March 21-June 21), up 10% year-on-year.
Around 25,590 tons of copper cathode were produced in the month ending June 21, indicating a 1% decline compared with the same period of last year.
The Iranian copper industry produced a total of 94,995 tons of copper anode in Q1, up 4% compared with last year’s similar period.
A total of 32,670 tons of copper anode were produced in the month to June 21, up 9% year-on-year.
In addition, an aggregate of 320,449 tons of copper concentrate were produced during the three months under review, up 3% compared with the same period of last year.
During the third month of the year, copper concentrate output stood at 105,595 tons, registering a 5% YOY growth.
The IMIDRO report also shows a total of 2,027 tons of molybdenum were produced during the three-month period, unchanged from the same period of last year.
Molybdenum output in the third month hit 684 tons, experiencing a 5% rise compared with the previous year's corresponding period.
The National Iranian Copper Industries Company is a leading copper producer in the Middle East and North Africa region and its mines hold close to 14% of Asia’s copper deposits and about 3% of global reserves.
The functions of this company include among others: To extract and operate mines of copper and produce high-grade copper products such as cathode, slab, billet and 8-mm wires.
NICICO made 260.46 trillion rials ($964) in net profit in the last Iranian year (March 2020-21), up 118% YOY.
The company’s sales reached 419.4 trillion rials ($1.5 billion) during the year, up by 87% YOY.
Sarcheshmeh and 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.
