New Aluminum Unit Meets 30% of Iran's Domestic Demand

EghtesadOnline: Jajarm Aluminum Complex has become operational and added 40,000 tons to the capacity of Iran's annual aluminum ingot production.

News ID: ۷۸۴۷۶۳

16 July 2019

An inaugural ceremony was held at the complex on Sunday in the presence of Minister of Industries, Mining and Trade Reza Rahmani.

The plant was inaugurated on the sidelines of President Hassan Rouhani and his Cabinet’s visit to North Khorasan Province, wherein lies Jajarm Aluminum Complex, ILNA reported.

According to Rahmani, the plant has become operational with an investment of 17 trillion rials ($136 million), creating 400 direct and 1,600 indirect jobs.

"Jajarm Aluminum Complex meets 30% of Iran’s domestic demand," Financial Tribune quoted him as saying.

Iran has a current aluminum nameplate capacity of 457,000 tons per year, of which about 437,000 tons are operational, according to Metal Bulletin.

The country is planning to increase annual production to 1.5 million tons by 2025.

Rahmani noted that at present 27 major mining projects with an investment of more than $3.5 billion are underway in Iran, including South Aluminum Company with an investment of $1.2 billion, which is slated to be inaugurated by the end of the current fiscal year (March 2020).

The minister also inaugurated Iran’s first production line of alpha-alumina in Garmeh County during his provincial visit.

The production unit came on stream with an investment of 270 billion rials ($2.16 million) and has created 45 direct and 250 indirect jobs.

Alumina, also called aluminum oxide, is a white or nearly colorless crystalline substance used as a feedstock for the smelting of aluminum metal. It also serves as the raw material for a broad range of advanced ceramic products and as an active agent in chemical processing.

Alumina is produced from bauxite, a naturally occurring ore containing variable amounts of hydrous (water-containing) aluminum oxides. It is an important material that can be prepared from bauxite or kaolin in several phases. It is widely used as a basic catalytic material because of its high chemical inertness, strength and hardness.

Alpha-alumina is the most stable form of alumina, which is employed as a ceramic material. Also known as nano alumina, it is white puffy powder. The specific surface area is low, resistant to high temperature and inert, but does not belong to activated alumina and has almost no catalytic activity.

The material is used in the production of industrial and engineering ceramics, refractories, ceramic glaze and catalysts, as well as in oil, gas and petrochemical industries.

According to the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report, the production of Iran's major aluminum producers stood at 41,367 tons during the first two Iranian months (March 21-May 21), which indicates a 32% decrease compared with last year's corresponding period.

Flagship producer Iran Aluminum Company accounted for 30,625 tons of the total figure, registering an increase of 2% year-on-year. It was followed by Almahdi Aluminum Company with 5,221 tons, down 56% YOY, and Hormozal Aluminum Company with 5,156 tons, down 73% YOY.

Aluminum production during the month to May 21 stood at 20,862 tons to witness a fall of 31% YOY.

Iran Alumina Company produced 38,908 tons of alumina powder during the two months, down 6% YOY.

Alumina powder output in the month to May 21 amounted to 20,649 tons, down by 1% compared with last year’s similar period.