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Interview with Engineer Marjani, Managing Director of Iralco
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Note: Development of aluminum industry is one of the important programs of Ministry of Industries and Mines and the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).
Iralco Company, as one of the successful companies in aluminum production and export has performed important activities in recent years including construction and exploitation of an aluminum bullion producer unit with 110,000 ton capacity which is equipped with modern technologies of the world.
“Mine and Development” weekly published an interview with Managing Director of Iralco and asked about more details of production, exports, under execution and future plans of Iralco as follow:
To what extent does Iralco achieved its determined goals?
The most important goal of Iralco in recent years was construction of an aluminum bullion producer unit with 110,000 ton capacity, equipped with modern technologies of the world with high level of efficiency and low level of material consumption, low energy consumption and reduction of pollutions.
In order to achieve that goal, KA200 technology has been chosen to control pollutions in accordance with the environmental standards. This system was designed in 3 phases among which the first phase exploited in 2007 by the experts of the Chinese N.F.C Company. The Iranian experts’ capabilities and hard work resulted in exploitation of the 2nd and 3rd phases which are now producing 220 tons of aluminum bullion per day. The goal has been achieved through localization of the technology in Iran.
According to the governmental approval the anode production plant should be constructed out of Arak City.
Unfortunately the needed land has not been allocated to this plant so the equipments have not been installed. Thus Iralco has to import the needed anode and tens of billion Tomans costs are being imposed to the company each year.
Iralco was 95 percent successful in achieving its goal in 2008.
What were the most eminent activities of Iralco in 2008?
As mentioned, the exploitation of the 2nd and 3rd phases of the plan with 110,000 tons of capacity which was merely an environmental plan aiming at reduction of the pollutions. It is considered as an attempt for localization of the technology of constructing aluminum plants in Iran by which we can use local contractors and Iralco experts’ experiences for the under execution plans in Iran. Hitting the record of 145,000 tons of aluminum production in 2008 was another success of Iralco which brought pride for the aluminum industry of the country.
How much did Iralco export last year and what was its share in Iran’s aluminum export? Please also tell about export plan of Iralco in this Iranian year.
Iralco always exports some part of its products. But it could hit its export record and exported 61,394 tons of aluminum bullion in 2008 which showed more than 90 percent increase in exports comparing to its previous year. Exports of Iralco in 2007 summed 32,000 tons. In this reason we were chosen as the best exporter of the province and one of the best exporters of the country in 2008 and took an appreciation memorial from our president.
Iralco exported 47 percent of the aluminum bullion exports of the country in the last year. Considering the fall of aluminum bullion global prices which began in the second half of the last year, the prices are still at a low level. So exports are not cost effective at present but in order to supply the raw materials for Iralco we have to export some parts of our products this year.
Does Iralco have new under execution plans? Please explain.
Construction of anode production plant, construction of the proprietary 500MW power plant, automation and improvement of the old furnaces of the reduction workshop are among the most important plans of Iralco in this year.
Establishment of anode production plant and construction of a proprietary 500MW power plant are among the future plans of Iralco and IMIDRO. An agreement was sign by IMIDRO and IDRO for the construction of the 500MW power plant. We hope that its execution begins this year and it be exploited in future.
To what extent is the private sector present in aluminum industry and how much it should increase its presence?
80 percent of Iralco shares have been abalienated to the private sector in accordance to the 44 article of the constitution as follow: 40 percent of that was privatized in form of two 20 percent blocks, 30 percent of that transformed to the Adalat Shares and some 5 percent of that was allocated to the workers who were working in Iralco in form of the preferential shares. 5 percent of that was available to the public in securities exchange.
Basically the value of investments for construction of aluminum plants depends on the amount of production and the type of the used technology. For example construction of an aluminum bullion producer plant with 110,000 ton capacity needs between $3,000 and $7,000 investment for each ton of aluminum production capacity. So $330mil to $770mil investment is needed. Because of the high level of the needed investment, the private sector rarely tends to invest in this industry. In implementation of the plans of the country aiming at production increase it is necessary that the government involves and cooperates with the private sector. At present there are two industrial units that are producing aluminum bullion: Iralco and Almahdi Aluminum Co. As 80 percent of the shares of Iralco have been abalienated, it is considered as a private sector company now. Almahdi Aluminum is still a public sector company because most of its shares still belong to the public sector. Other plants are also under construction in cooperation between public and private sectors.
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