FACTBOX: Iran's metals industry expansion driven by sizable mineral reserves

Oil-rich Iran, weighed down by sanctions and locked in conflict with Israel, boasts significant reserves of copper, iron ore, zinc and bauxite, and has made considerable investments in its metals industry to strengthen its position in the global market.

Complemented by extensive smelting and refining sectors, Iran delivers refined steel, aluminum, copper and zinc products to both domestic and foreign consumers, ranking among the top producers of metals in the Middle East.

The following is a breakdown of Iran's metals and mining industry.

Iron ore

• Iran holds substantial iron ore reserves, with the US Geological Survey estimating domestic reserves at about 3.8 billion mt, or about 1.9% of the world's total known reserves.
• Key mines such as Chadormalu, Gol-e-Gohar, and Sangan are pivotal to Iran's iron ore production, with nameplate capacities respectively of about 16 million mt/year, 7 million mt/year, and 2.6 million mt/year.
• The Iranian Mines and Mining Industries Development and Renovation Organization, or IMIDRO, reports that the production of iron ore concentrate has experienced significant growth in recent years, increasing to around 100 million mt by 2021 from 49 million mt in 2014.

Copper

• According to IMIDRO, Iran has about 2.6 billion mt of identified copper reserves, representing around 5% of world's known reserves.
• The National Iranian Copper Industries Company, or NICICO, operates the country's three major copper mining, smelting and refining facilities: Sarcheshmeh, Miduk, and Sungun.
• Government figures indicate that the country's annual production of copper concentrate rose to about 1.2 million mt in 2021 from 783,000 mt in 2014.
• In 2024, NICICO reported Iran's annual copper cathode production at 321,000 mt, equivalent to 1.2% of global production.

Zinc

• Iran has significant zinc reserves, concentrated primarily in the Angouran and Mehdiabad mines. The country's total zinc reserves are estimated at about 15 million mt, making it a major participant in the global zinc market.
• The Angouran mine is particularly noteworthy, as it is one of Iran's largest zinc producers, with a production capacity of about 1 million mt/year.
• Several processing facilities near the mines support zinc production. These facilities convert ore into refined zinc ingots.

Bauxite and alumina

• Iran Alumina Co. is the sole producer of bauxite and alumina in the country, operating the Jajarm mine in Khorasan-e Shomali province. This facility represents the country's largest bauxite mine, with estimated reserves of 10.6 million mt and an average total available alumina content of 47%.
• Further downstream, Iran remains a significant producer of aluminum, with production during the 11 months between March 20, 2024, and Feb. 18, 2025, reported at 582,200 mt. Iran's major aluminum producers include South Aluminum (SALCO), Iranian Aluminium Company (IRALCO), Almahdi Aluminium and Iran Alumina.

Steel production

• Iran's steel sector primarily relies on electric arc furnace technology for its operations. Leading EAF producers include Mobarakeh Steel Co., with 8.5 million mt/year crude steel capacity, Khouzestan Steel Co., with 3.6 million mt/year capacity, and Esfahan Steel Co., with 3.6 million mt/year capacity.
• The sector also maintains substantial direct-reduced iron capacity exceeding 10 million mt/year across facilities in Hormozgan, Khouzestan and Mobarakeh.

Metals trade

• Iran's mineral exports have become a vital component of its economy, particularly in the face of fluctuating oil revenues. The key mineral exports include steel, copper, iron ore and zinc.
• Major destinations for Iranian mineral products include countries in Asia, Europe and the Middle East. Notably, China is a key importer, absorbing a substantial portion of Iran's iron ore, steel and copper exports, driven by its robust industrial demand.
• In addition to China, Iran exports minerals to neighboring countries such as Turkey, Iraq and the UAE, which are key markets for Iranian cement, aluminum, zinc and steel products. The geographical proximity and established trade routes facilitate these exchanges, allowing Iran to capitalize on regional demand.
• By diversifying export destinations and focusing on value addition, Iran seeks to bolster its economy and reduce dependency on oil revenues.