Once the second and third phases of the project are completed, the production capacity of the plant will reach 110,000 tons by March 2009.

Addressing Iralco staff while inaugurating phase one of the project, Tahmasbi said that two companies of Al-Mahdi and Iralco currently produce 210,000 tons of aluminum, Iran Daily reported.

He greeted the staff on the 40th anniversary of the establishment of the company but he warned of the rapid progress of neighboring countries in the industry.

Highlighting that the government attaches great importance to non-ferrous metals, he said the country should try for a three-fold rise in the production of such metals within three years.

Tahmasbi said Iran’s Industrial Development and Renovation Organization (IDRO) has placed its entire capabilities on the completion of Iralco development project.

He continued that that the ministry has planned to raise aluminum production ceiling to 660,000 tons by the end of Fourth Development Plan (2005-2010).

The minister said the government is determined to implement Article 44 of the Constitution that calls for extensive privatization and downsizing the government, adding the ministry aims to raise aluminum production by encouraging private investment.

Speaking at the same gathering, deputy managing director of China’s Non-Ferrous Metal Industry’s Foreign Engineering & Construction Company Limited (NFC), Vang Hongqian, said that Chinese counterparts would make phases two and three of Iralco Development Project ready by the year to March 2008, because they know that expediting these projects is of high importance for Iran. However they also term Iralco as an outstanding project because it does not pollute the environment.

Tahmasbi said that the Chinese are pioneers in developing aluminum industry accounting for 30 percent of the total global production. He concluded that the two countries could have proper cooperation in aluminum production.

Permits were issued in June to offer five percent of Iralco’s shares in the stock exchange gradually. It is predicted that this amount will rise by 40 percent during 2007-2008 fiscal. The company’s profits exceeded 500 billion rials in the year to March 2007.

It also produces 54 percent of country’s total aluminum output. Iralco is the first company to produce aluminum ingots in the country.