Iran opens first alumina plant in blow to US sanctions

Iran has brought online its first alumina refinery, marking a milestone in its production of the strategic metal and cushioning blows from unilateral US sanctions.

The first phase of the Jajarm refinery commenced operation with a capacity to produce 40,000 tons per year of alumina which is the key metallic input derived from bauxite used to smelt aluminum.

Jajarm in North Khorasan province holds Iran’s largest deposit of bauxite - the raw material used to make aluminum.

President Hassan Rouhani, who is touring the northeastern province, watched the inauguration via a video conference. “The government is honored to press ahead on the path of development in the face of sanctions,” he said.

Last August, the US re-enacted its secondary sanctions against Iran’s steel and aluminum products, gold and precious metals, graphite and coal to choke off the country’s vital revenue streams.

Further sanctions were imposed in November to target its lifelines in the oil, energy and shipping sectors.

Aluminum is a key metal used in transportation, packaging, construction, electrical industry, consumer durables and machinery. It is a vital component in manufacturing cars and airplanes.

While Iran does not have a viable aviation industry, it has a sprawling automotive sector and a potent defense infrastructure.

The inauguration is highly significant because it cuts Iran’s reliance on alumina imports, mostly from key Asian producers such as India and China.

The alumina refinery in Jajarm is built to ultimately reach a production plateau of 280,000 tons per year. The second phase is about to add another 110,000 tons of capacity to Iran’s alumina output.

EA