'We will issue the preliminary study next year,' says Ali Raisszadeh, a member of the Nicico board. 'The project will have to address some difficulties over water recovery and mining equipment facilities.' Nicico is now carrying out smaller projects at Sarcheshmeh including a water tailing project to raise water recovery to 70 per cent, and the modification of copper furnaces to increase production to 250 tonnes in four-five hours.

The phase 1 Sarcheshmeh expansion is in the commissioning phase, taking mining production capacity to 21 million t/y from 14 million t/y of ore. Copper treatment at the complex is being increased by 180,000 t/y from 380,000 t/y of concentrates, resulting in new production of 50,000 t/y of pure copper to add to existing output of 110,000 t/y.

Two other projects under commissioning in Kerman province are: Maiduk, with mining capacity of 5 million t/y of ore, copper concentrate capacity of 150,000 t/y and pure copper capacity of 50,000 t/y; Khaton Abad, with smelter capacity of 80,000 t/y. A project at Sungon in West Azerbaijan province, will come on stream next year with ore production of 7 million t/y and concentrate and pure copper output of 170,000 t/y and 50,000 t/y.

Most of the new production will go to the export market, says Raisszadeh. The expansion projects have so far been self-financed but in future, the Nicico will also consider introducing foreign financing through buyback schemes and project finance.