Iran to launch aluminium smelter Salco early 2019

Iran is rapidly progressing to launch a new aluminium smelter South Aluminium Company (Salco) in early 2019 in the Lamerd special economic zone in the south of the country near the Persian Gulf. The smelter is expected to boost the country’s aluminium production by 70 per cent and make it self-sufficient by taking advantage of rich natural gas reserves.

Media Barbadian, deputy minister of industry, mining and trade told the CRU Aluminium conference in London on Tuesday, April 24, 2018, the construction of the smelter is underway and due to produce 300,000 tonnes per year in the first phase.

Karbasian, the chairman of IMIRDO, the state-owned Iranian Mines and Mining, Industries, Development and Renovation Organisation, owns 49 per cent share of the smelter, while another 51 per cent is owned by Iran’s Ghadir Investment Company.

Salco is estimated to fulfil the shortage of aluminium production in Iran by producing about 300,000 tonnes every year because currently the total production of aluminium in Iran stands at a little above 400,000 tonnes, while consumption is around 600,000 to 700,000 tonnes, said Amir Mirchi, managing director of Canadian consultancy Auryce.

The Salco smelter will use energy from a gas-fired power plant, said Karbasian, adding that Iran has high hopes on this project. By 2025, the country expects the plant to have an annual production of 1 million tonnes of aluminium.

Having gas power will also help with costs at Salco, Amir Mirchi said. “I see Salco production costs way below US$1,200 (per tonne).”