IMIDRO Surveys Copper Industry Output in Fiscal 2020-21

EghtesadOnline: The National Iranian Copper Industries Company and its subsidiaries, including Sungun Complex, Miduk Complex and Sarcheshmeh Copper Complex, produced an aggregate of 355,612 tons of copper anode in the last fiscal year (March 2020-21), posting a growth of 17% compared with last year’s similar period.

News ID: ۷۸۶۴۰۷

28 April 2021

The data were released in Iranian Mines and Mining Industries Development and Renovation Organization’s latest report.

Sarcheshmeh accounted for the largest portion of the output during the year under review, with 234,067 tons, down 2% YoY.

Around 31,451 tons of copper anode were produced in the month to March 20, up 4% year-on-year.

Sarcheshmeh accounted for 22,115 tons of the monthly output, up 3% YoY.

A total of 1.2 million tons of copper concentrate were produced during the previous fiscal year, up 2% compared with the year before. Sarcheshmeh Copper Complex produced the largest share of the total output, 712,289 tons, up 1% year-on-year.

The output during the month to March 20 reached 101,989 tons, marking an 18% growth compared with the same period of last year.

The production of copper cathode hit 280,275 tons in the fiscal year under review, up 12% YOY.

Sarcheshmeh Copper Complex solely produced 176,300 tons of the total sum.

Around 24,495 tons of copper cathode were produced during the 12th month of the fiscal year, indicating a 5% decline compared with the same period of last year.

According to the United States Geological Survey, Iran holds the world's ninth largest copper reserves.

Iran holds about 4 billion tons of estimated copper reserves, according to the Geological Survey of Iran.

Sarcheshmeh and Miduk in Kerman, and Sungun in East Azarbaijan are among the most important copper mines of the country.

Sarcheshmeh is considered to be the second largest copper deposit worldwide.

NICICO Sales Rise 90% to $1.6b

The National Iranian Copper Industries Company's sales reached a record high of 419.4 trillion rials ($1.6 billion) in the last Iranian year (March 2020-21), says the company’s managing director.

Ardeshir Sa'd-Mohammadi added that the figure indicates a 90% increase compared with the same period of the year before.

He added that NICICO’s sales during the 12th month of the year (Feb. 20-March 20, 2021) totaled 72.7 trillion rials ($290 million), the company's website reported.

NICICO’s sales totaled 227 trillion rials ($886 million) in the fiscal 2019-20 to witness a rise of 127% compared to the year before.

The company sold 272,400 tons of cathode last year, an all-time high, according to the official. The number stood at 248,000 tons in the previous year.

NICICO plans to increase copper concentrate output by 900 million tons to reach 2 million tons in mid-term. Concentrate production capacity of the company is set to reach 2.6 million tons in NICICO's 2030-31 Development Plan.

"Our concentrate production capacity is set to reach 2.6 million tons in NICICO's 2030-31 Development Plan … The development plan has been revised recently so that it covers a parallel development for all groups of products," Behrouz Rahmati, managing director of National Iranian Copper Company, was quoted as saying by ILNA.

However, concentrate production has been prioritized in the company's outlook, taking into account the "60% marginal revenue" that the product generates.

As per the plan, NICICO's copper cathode production capacity should exceed 550,000 tons by 2031, he added.

According to Rahmati, the development of refinery sites is the company's next priority, noting that the marginal revenue of developing refinery plants is about 20%.

NICICO also plans to finalize the development of the third phase of the Sungun copper concentration plant, and the second phase of Miduk Complex as well as the third phase of Sarcheshmeh Copper Complex.

The company is now the leading copper producer in the Middle East and North Africa region, as it holds close to 14% of Asia’s copper deposits and more than 4% of global reserves.

Iran’s copper mines make up 4.15% of the global reserves. Iran's major Sungun Copper Mine’s reserves exceed 1.2 billion tons while those of Miduk Copper Mine surpass 500 million tons.

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.

Taking into account the development of copper mines of Der Alo Copper Mine, Darezar Copper Mine and Khatounabad (all three in Kerman Province) as well as new explorations, Sa'd-Mohammadi believes the country’s copper reserves will last for the next 100 years.