Iran to launch $1 bln Parsian alumina plant to cut imports, boost aluminum chain

The facility, to be built in the Parsian Special Economic Zone in Hormozgan province, is designed to produce one million tonnes of alumina powder annually.

Its construction is part of the country's Seventh National Development Plan and will begin once final approvals are secured from relevant authorities, including the Supreme Economic Council.

At present, Iran's alumina supply is almost entirely dependent on a single source - the Jajarm plant, which produces about 240,000 tonnes annually. With domestic demand for aluminum smelting growing, imports of alumina have historically exceeded 200,000 tonnes per year, leaving the industry vulnerable to supply gaps.

Officials said the Parsian project will sharply reduce reliance on imports while adding strategic capacity to the country's aluminum chain. The plant's location is considered crucial: Parsian is equipped with a dedicated port, enabling direct access to imported raw materials and facilitating mineral exports.

The project is also expected to strengthen downstream industries. With additional alumina supply, Iran's major aluminum smelters - IRALCO and Almahdi - will have greater room for expansion, enhancing the country's standing as a leading producer in West Asia.

According to IMIDRO, the Parsian alumina complex will not only meet domestic needs but also position Iran to play a larger role in regional markets, marking what officials describe as a major leap for the aluminum industry.