LONDON (Reuters) – Iran is on track to launch a new aluminum smelter early next year that would boost the country’s output by 70 percent, making it self-sufficient in the metal by taking advantage of rich natural gas reserves.
Construction is underway of the South Aluminium Corp (Salco) smelter, due to produce 300,000 tonnes per year in its first phase, Mehdi Karbasian, deputy minister of industry, mining and trade, told the CRU Aluminium conference in London on Tuesday.
Karbasian is also chairman of IMIDRO, the state-owned Iranian Mines and Mining, Industries, Development and Renovation Organisation, which owns 49 percent of Salco. The other 51 percent is owned by Iran’s Ghadir Investment Company.
While Iran currently produces slightly over 400,000 tonnes per year of aluminum at two plants, consumption is around 600,000 to 700,000 tonnes, said Amir Mirchi, managing director of Canadian consultancy Auryce, which is advising Salco.