Due to the unique properties of aluminum and the strategic role of this
metal in the world, its use has become widespread in many industries,
especially high-tech industries, and the market demand for this metal has
Considering the goal of producing high grades of this metal in the country’s
development plans and the construction of several aluminum billet factories
the importance of production of this strategic metal, the main source of its
production being aluminum oxide (AL2O3) with high purity becomes clearer.
Meantime, the only producer of alumina powder in the country is Iran Alumina
Company, Jajarm Complex. Geochemical exploration of Jajarm bauxite mines,
located 10 kilometers northeast of Jajarm, in North Khorasan Province,
reflects the fact that the storage and quality of Jajarm bauxite is good
enough to justify the creation of an alumina production plant.
The main problem in the development of aluminum industry in the country is
the supply of its primary material, alumina, which is also dependent on the
supply of its primary substance, the bauxite mineral. Iran lacks rich
bauxite resources due to its geographical location. At present, the
geological reserves of the country are less than 50 million tons. Of these,
the definitive reserves were less than 20 million tons and the recoverable
reserves were less than 10 million tons.
Naturally, industrial planning in the field of production will depend on
recoverable reserves. In our country, we need 1 million tons of bauxite
annually for the alumina plant. Therefore, the main channel for developing
this industry passes through expansion of the capacity of raw materials
supply, in particular bauxite.
Iran Alumina Company has put in place three main approaches in this regard,
including “strengthening the field of exploration”, “using private sector
capabilities” and “using technical engineering services in the form of
consultancy for mining and exploration operations”.
Iran Alumina Company, in the first place, focused on the field of
In 1394 (2015/16), by adopting a proper approach and through public call two
contractors were assigned to fulfill this task. The result of their valuable
efforts was to add 14 million tons of bauxite to the country’s definitive
reserves and increase it to 34 million tons. This calendar year (started
March 21, 2018) too, the target of 20,000 meters of exploration drilling is
in the company’s plans. It is hoped that by findings of the exploration,
Iran Alumina Company’s definitive reserves will increase to more than 40
million tons. In the second step, we intend to provide bauxite based on the
capabilities of the private sector.
The main potential in this sector is in small mines that are owned by the
private sector. The result of this approach was the purchase of 70,000 tons
of quality bauxite from the mines around Jajarm and two private-sector
The third plan of Iran Alumina Company was to inject technical and
engineering knowhow in the form of consultation into the field of
exploration and development of alumina reserves. In this approach, with
long-term foresight and decision making, the concentration of bauxite
extraction from available and quality resources in Jajarm was directed to
other existing mines including Tash, Semnan and Yazd.
Also, in order to strengthen the competitiveness of the finished cost canal,
the consumption of energy and primary materials diminished.
Meanwhile, it must be noted that the development of this industry and, in
general, its related industries, especially the aluminum industry, requires
revision of some existing policies. Currently, more than 65 percent of the
country’s alumina is imported, so any major decision that could strengthen
the country’s alumina plant will prevent exit of foreign exchange from the
This calendar year, there are several plans to expand the dimensions of this
industry in the country’s economic system. The completion of Jajarm Bullion
Project is a major development project of the company in 1397 (2018/19). The
project, with a significant improvement over the last two years, has been
completed %87.30. Also, the Aluminum Billet Project with a capital of 1,300
billion rials will be launched with private sector participation.
Other projects, such as Special Hydrates Generation, are using the highest
level of technology in our upcoming business calendar. In addition to the
above, the operations of the second and third phases of aluminum ingot
production and downstream industries, including flat aluminum plates and
aluminum alloys, are included in the future plans of Iran Alumina Company.
Meanwhile, due to the increase in Iran’s alumina bauxite deposits and
exploratory activities carried out over the past two years, the start of the
second phase of the development of Iran Alumina Company in Jajarm has been
taken into consideration.