Iran’s mining industry continues to go from strength to strength and in particular, the copper mining sector remains buoyant, with exciting expansion development already well underway.

That is good news of course for National Iranian Copper Industries Company (NICIC), a business that has seen production significantly ramped up in recent years.

The company was started in 1972 (1351H.), when Sarcheshmeh Copper Mines Joint Stock Co of Kerman was established; and, later, in 1976(1355H.), it was renamed as National Iranian Copper Industries Co to involve all copper mines operations throughout the country. Operations had begun in earnest in 1974, when the first extraction work commenced.

“This company has numerous responsibilities to do including extraction and utilization of copper mines, production of copper concentrates and manufacturing copper products such as cathodes, slabs, billets and 8mm wire rods. Sarcheshmeh and Miduk mines in Kerman province and Sunegoon mine in eastern Azarbaiejan province are of the most significant copper mines in the country,” states the company website.

Iran is considered to be located on the world copper belt which runs from the southeast to northwest of Iran and Azarbaijan. The Porphyry copper deposit of Sarcheshmeh is one of the largest of its kind in the world.

The Sarcheshmeh copper deposit is located some 160 kilometres southwest of Kerman and 50 kilometres to the south of Rafsanjan at an average altitude of 2,600 metres and maximum altitude of 3,000 metres.

The site is situated in the central Zagros mountain range and is composed of stratified, sedimentary and volcanic rocks and faults pertaining to third geological era. The total Sarcheshmeh ore reserve is thought to be about 1.2 billion tons of sulfide ore at the grade of 0.7 per cent Cu.

NICIC is the result of many years of exploratory work in Iran and the company website explains that knowledge of the nation’s resources dates back in time:

“Copper articles discovered during various investigations in different parts of Iran and also remainders of primitive smelting furnaces show that Iranians have had the knowledge of mining and smelting of copper since old ages.

“Archeological studies show that mining activities had been relatively brisk since about 5,000 B.C. Unearthed articles during excavations which have been made of copper, bronze, gold and silver show that mining operations and metal foundry industries retained their progressing trend in later millenniums.

“After Islam, especially during the Seljukis and Safavid era, mining and smelting operations continued their progress.”

As the Sarcheshmeh mine was established, a nearby town was provided for the worker and the township comprises of 2,500 residential units and 150 suitable furnished caravans. This township provides a range of amenities including educational centres from kindergarten to high school, a mosque, clinic, bank, interest free loaning services, cooperative store, hotel, cinema, gas station, transportation terminal, repair workshop, sports centre and fanfare.

With copper in great demand, Iran has embarked upon an ambitious expansion plan for production and in January 2012, news came through that production capacity, at the time standing at around 220,000 tons per year, was set to double by the end of the fifth five-year development plan (2015).

Mehdi Ghazanfari made the announcement on the sidelines of a ceremony inaugurating a number of copper production development plans in south eastern Kerman province.

At the time Ghazanfari said that Iran held around 57 billion tons of proven and probable mineral reserves, worth around $770 billion, placing the country among the top 10 countries in terms of mineral reserves, the IRNA news agency reported.

Ardeshir Sa’d-Mohammadi, Managing Director at NICIC had announced in December 2011 that more than 80 trillion rials (some $8 billion) had been invested in Iran’s copper industries since the beginning of that Iranian calendar year which started on March 21, 2011.

Sa’d-Mohammadi said some 36 million tons of copper is extracted annually in the country and that figure was projected to increase to 70 million tons during 2013.

“There are currently, 40 development plans for copper production, with a value of 7.35 billion dollars, underway across the country, and through the implementation of these projects, Iran’s annual production capacity of copper will rise from the current 200,000 tons to 700,000 tons, showing a 3.5-fold increase,” the NICIC chief added.

By June of this year, NICIC’s stock had further grown and the CEO reported that the company stodd among the top 10 companies on the Tehran Stock Exchange, with the company valued in the region of $4,368,627,900, a figure placing the business seventh in the rankings. (740 words)

That same month saw CEO Ahmad Morad Alizadeh announce that production capacity is set to reach 400,000 tons by 2018.

Alizadeh forecasted the copper output capacity to reach 280,000 tons in coming year, 300,000 tons in 2016, 350,000 tons in 2017, as well as 380,000 to 400,000 tons in 2018, respectively.

“Small- scale mines demand large investments, while the small private sector is not able to meet the financial resources. Private sector is not capable of taking high risks in the areas of exploration, thus negotiations are ongoing with Ministry of Industry, Mine and Trade, IMIDRO, NICICO, banks, as well as Mines Insurance Fund to decrease the aforementioned risk,” he noted.

“If the structure for the contracts is defined, the guarantee for payments will be made .If everything goes rationally; about 150 to 200 thousand tons of copper concentratecan be purchased from the private sector in the next 6 years, while the investment is made by people and private sector.”

He added that the launch of the second phase of Songon and Sarcheshmeh mines’ development plans in the current Iranian year (started March 21), will add  around 300,000 tons to the country’s copper concentrate production capacity, an equivalent of 70 tons of copper mineral.

“In the preceding six months, a defined and continuous review is undertaken on the ​​profitable and efficient projects, thus the plans with higher added value will be implemented. Setting up concentrate production plants is of more revenue in comparison with other projects. As by processing 0.5 per cent ore and reaching 25 per cent alloy, the economic value will be boosted 40 to 50 times,” he affirmed.

“By launching the mentioned plans, the capacity will be fulfilled in the coming two years and both plants will be operational in East Azarbaijan and Kerman provinces in the second half of the year,” he concluded.