(Minews) - After an eight-year hiatus, the construction of the first phase of South Aluminum Company (SALCO) was launched in the southern Fars Province. The company has the annual capacity of producing 300,000 metric tons of aluminum ingots upon completion of the first phase, Fooladnews reported.
The news came during President Hassan Rouhani’s trip to the province. According to deputy minister of industry, mine and trade Mehdi Karbasian, preparations for the construction of the first phase started after a letter of credit (LC) was opened by Chinese financiers. The opening of the LC was facilitated by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).
SALCO can help usher fundamental economic and social changes considering the fact that it is located in an underdeveloped region called Lamerd, said Mehdi Karbasian, who is also the head of IMIDRO. The company is owned by two major shareholders Ghadir Investment Company (comprised of different government and private sector shareholders) and the IMIDRO.
Upon completion of all phases, SALCO will be able to produce 900,000 tons of ingots per year, said Karbasian, adding that the administration is developing infrastructural facilities such as electricity and natural gas in Lamerd region to pave the way.
Karbasian said the machinery and equipment used in SALCO is all European, however it is provided by the Chinese. He added that Ghadir investment group is building a 500-megawatt power plant next to the aluminum plant to meet the energy demands and will be able to supply other industries in the region with electricity.
Officials from the industry ministry recently announced government plans to allocate around $11.4 billion for the development of the domestic aluminum industry as part of plans to nearly quadruple the aluminum output by 2025. Iran is the 20th largest producer of aluminum in the world, according to IMIDRO.
Aluminum ingot production topped one million metric tons in the second year of the 5th Five-Year Economic Development Plan (2011-2016), showing an increase of 37% compared to the same period in the 4th Five-Year Economic Development Plan (2005-2009). The country’s aluminum ingot production was 318,000, 337,000 and 350,000 metric tons through 2011 to 2013, respectively.
