Iran agrees copper smelting deal with Outotec

11 May 2011

The $87.5m deal covers technology supply and supervision

State-owned National Iranian Copper Industries Company (NICIC) has awarded Finland’s Outotec a $87.5m deal to supply flash copper smelting technology for its facility at Sarcheshmeh in the Kerman province.

As well as supplying technology and equipment for flash smelting, Outotec will supervise the detailed engineering and installation, and provide training services. The contract value is approximately $87.5m, according to a 10 May press release.

After obtaining clearance from the relevant export control authorities to ensure the contract did not breach sanctions on Iran, Outotec agreed a deal with Dubai’s Tech Talk for the supply contract.

“Outotec don’t do turn-key solutions. They will just supply technology and supervision. The engineering will be done by other firms, including Tech Talk,” says a source close to the project.

In September 2010, Outotec signed a $58m deal with Italy’s Irasco for the supply of technology for NICIC’s expansion of its copper concentrator facility at Sarcheshmeh. The deal includes the design of grinding and thickening circuits, proprietary equipment supplies as well as installation supervision and training services. The deliveries are estimated to take place in 2012.

The technology will be part of NICIC’s planned third phase expansion at its largest copper facility. The new plants will process 2,200 tonnes an hour (t/h) of 0.65 per cent grade copper ore to produce approximately 379,000 tonnes a year (t/y) of copper concentrate, with a grade of 26 per cent and 4,100 t/y molybdenum concentrate with a grade of 54 per cent.

NICIC is listed on the Tehran Stock Exchange and was the largest non-oil exporter in Iran in 2010, with exports worth $1.3bn.

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