Alumina Plant Project of Iran (APPI)

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Based upon the economic policies of the government of Iran and in line with the five-year & ten-year industrial development plans of the Ministry of Mines & Metals, increasing of aluminum production capacity considered to be a very significant element of the government's long term plan for developing the mining and industrial sector in Iran.

Therefore, besides development and modification of Arak Aluminum Complex (IRALCO) and construction of Bandar-abbas Aluminum Complex (AL’MAHDI), the Ministry commissioned a study for establishment of an alumina plant to curb the import of alumina powder.

Backed by geological survey and feasibility studies, it was concluded that Jajarm Bauxite Mines (near Jajarm in north-east province of Khorassan) in comparison with other bauxite mines in Iran, are quantitatively and qualitatively richer to support an alumina production. Hence, the Ministry approved the construction of an alumina plant in Jajarm with the capacity of 100,000 t/y that was increased to 250,000 and finally to 280,000 tons.

To accomplish this goal, the Ministry awarded the basic design and detail engineering of this plant, through an international tender, to Techno export Foreign Trade Company Limited of Czech Republic in 1991, as the main contractor to materialize this national project.

Although the original estimation was to complete the project within 5 1/2 years, the project progress was not in line with the plans laid out in the feasibility study, due to difficulties resulting in the improper and inefficient managerial approach in execution of this project.

In 1996, the Ministry decided to transfer the Total Management of this project, to a private management company. In the early 1997, the Ministry of Mines & Metals, Deputy Minster of Logistic Affairs, based on different capabilities and past performance of Amid Engineering & Development Company (AMIDCO), nominated AMIDCO to provide the Total Project Management services to this project.

After preliminary study of the project and laying out the proper managerial tasks by our executives, with the help of 40 of AMIDCO’s top experienced managers at different levels and by changing the organizational structure of the project, the implementation of the new management started in the middle of 1997.

This project, which is one of the most significant government industrial projects, comprised of many different tasks and engineering disciplines.

The plant has been erected in the area of 400 acres with the production facilities area of 75 acres. The total weight of equipment, machineries, pipe racks, piping and steel structure that have been installed is estimated to be about 70,000 tons. Out of this, 54,000 tons are foreign-made and 16000 tons are from local suppliers. The volume of the concrete fabrication is estimated to be about 140,000 m3 of reinforced concrete. This has been achieved by conducting the daily activities of 2500 personnel, coordination between 2 foreign contractors and 24 local subcontractors and suppliers. The plant uses liquid natural gas from Neka-Sarakhs Gas Pipeline and the high-tension 400 kv connections to the national grid provides the plant’s needed electricity. The site is connected by two 280 Km asphalt roads to major cities (Boujnourd & Shahrood). To connect Jajarm site to the national railway network, some 50 Km extension railway has been built. The plant is also available through Boujnourd Airport, some 130 km from Jajarm, as well as private airport near the site.

AMIDCO provided services comprised of project control, planning, time scheduling, quality control/assurance, training, budgeting, supervision and inspection of installation, cost control and construction management functions for this project. Based on the above, the scope of work was re-examined and then broken to several packages. Each package, considering the capabilities of the local market, was then awarded to a local or foreign subcontractor.

The planning and coordination for and between different departments resulted in rapid problem solving. Many engineering discrepancies and technical non-conformities that have been overlooked were evaluated again and the proper solutions were delivered. By eliminating many over designed structures and layout corrections, a great deal of savings was accomplished.

Since 1997 that AMIDCO took over the project management task, the project progress started to catch up with the laid out plans because of implementation of profound changes, utilizing new techniques and providing services that started from re-negotiating the contract between the two parties (the Ministry and Techno export) to complete erection and precommissioning of the plant. The plant has already gone through the stages of commissioning and performance test, and is currently operational.