(MENAFN) Amir Khorrami-Shad, the managing director of the Iranian Mines and Mining Industries Development and Renovation (IMIDRO), has announced two initiatives aimed at saving a significant amount of money on imports, totaling USD600 million annually. In the first phase, the plan involves the establishment of an alumina production unit with a capacity of 800,000 tons, which could potentially save at least USD300 million each year. Additionally, the implementation of a sponge coke production unit is expected to yield further savings of USD300 million, according to Khorrami-Shad.
Currently, the country's production capacity for aluminum ingots stands at approximately 800,000 tons per year, as stated by Khorrami-Shad. However, to meet this production capacity, Iran requires around 1.6 million tons of alumina powder. Unfortunately, the domestic production capacity for alumina powder is only around 240,000 tons, resulting in a need for imports to supply aluminum factories.
This heavy reliance on imports for alumina translates into an annual expenditure of USD700 million to import 1.6 million tons of the material. To address this issue and reduce the financial burden, the IMIDRO plans to establish an alumina production unit capable of meeting a significant portion of the country's demand. By achieving a production capacity of 800,000 tons through this unit, Iran could significantly decrease its dependence on imports and save a substantial amount of money.
Furthermore, Khorrami-Shad emphasized the need to launch a sponge coke production unit as part of their cost-saving initiatives. The implementation of this unit would contribute to the overall objective of reducing import expenses by an additional USD300 million annually.
These plans put forth by the IMIDRO reflect a strategic effort to strengthen Iran's domestic production capabilities and decrease its reliance on imported goods. By bolstering the production of critical materials like alumina and sponge coke, the country aims to achieve greater self-sufficiency, reduce import expenditures, and bolster its economy. These initiatives are expected to have a significant impact on Iran's industrial sectors, particularly in the production of aluminum, while also contributing to the broader goals of economic growth and stability.
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