Economic and environmental goals of Calcimin Co. projects

Saeed Anjedani, the CEO of Calcimin Co., pointed out to this company’s plans for supplying raw materials from Iran or abroad. As one of the oldest zinc-production companies in Iran, Calcimin Co. witnessed a growth in production, sales, and exports,
gaining a special place in Tehran Stock Exchange. According to Anjedani, the global demand market does not wish to decrease the prices for certain reasons. He also explained the soon-to-be-installed BZS (Basic Zing Sulfate) project which pursues economic and environmental goals.

 

 

He mentioned the production and sales status of Calcimin Co. and added, “Compared to the predicted plan, we achieved a 6% increase in the production of zinc sheets, and a 3% increase in the production of zinc ingots last year (ending on 19 March 2017). Moreover,because of the increase in the global price of zinc as well as managerial factors such as increased production and decreased costs,we witnessed an 18-time increase in profits compared to the year before(ending on 19
March 2016).”
He went on, “Since I took over the company in the first half of 2016 up to the previous Iranian year (19 March 2017), the earnings per share of Calcimin Co. increased eightfold.”
Anjedani also commented on the type of production, “We produce minimum 99.95% zinc, focusing on the production of 99.97%
or 99.98% zinc which is important for foreign buyers.”

 

 

Supplying raw materials
On providing raw materials from Iran and abroad, he stated, “25% of the required soil is supplied from Angouran Mine, Zanjan
Province, and 5% from small mines in other areas, while we have to import the remaining 70%. After negotiating with trading
companies, we sign a contract including soil technical specifications and, finally, we make a purchase from the noted mines.”
About the mine purchased from Turkey, the CEO of Calcimin Co. said, "The mine we recently bought from Turkey is not yet ready for the exploitation or mineral production.
In other words, extraction will start after complementary and detailed explorations to prove that the materials are minable.”
According to Anjedani, part of the required soil is going to be supplied by the new BZS project. He stated, “This project had a
95% progress by mid-June and passed cold testing steps. Now, at the end of June, we are performing hot testing. We predict that the factory will be opened by the end of or after July.”

Waste will be concentrated
On the goals of establishing this plant, Anjedani explained, “BZS will use the waste of the present plant as feed and convert it into a 20% concentrate. During the past years, 2-3mt of 5-6% waste was produced.”
He continued, “Afterwards, this 20% concentrate will enter into another plant as a raw material to be converted into zinc sheetsand ingots. One of the advantages of opening the BZS factory is reducing the company's requirement for imported soil by 25%. In other words, our current demand will be decreased from 70% to 50% or less, while the productivity index will be increased.”
On the technology used in the new factory, the CEO of Calcimin Co. commented, “To launch this project, we invited tenders. Luckily, Iranian companies had the required technology,and we managed to hold an EPC tender. A general partnership company won the tender for the engineering, equipment purchase, and installation, consulted by the Non-ferrous Metals Research and Engineering Company.
This project was designed in Iran, and part of the machinery was supplied by contractors from Iran or abroad.In the preliminary estimation, we predicted an over $7m (IRR 245bn) cost which was increased to $18m (IRR 600bn) after design and engineering changes.”
He stated about the other projects, “In 2017, we defined and started nearly five plans. One of the most important projects is the Atmospheric Leach Project, aiming to condense some oxidized and sulfurated soils.The total value of this project is over $60m (IRR 2 trillion).”
He referred to the role of technological changes in the company, “A plan such as BZS means technology update. Since we opened the factory in 1997, we have not been able to use 5-6% soils in production lines or convert them to the higher alloy. However, we achieved the technology needed for converting this lowalloy soil to a higher one. Also, we now utilize filter presses with 1.5 x 1.5m plates in the BZS unit, while we used to have filter presses with 80x80cm plates. Such a change means that the new filter presses absorb more waste soil and increase efficiency and productivity. This is, of course, performed automatically, using less human force and, in the end, decreasing the product cost. We perform equipment restoration as well.”
On environmental problems, he noted, "This Company produces zinc ingots and lead concentrates, and the industry pollutes the environment during the production processes.These pollutions are of two types: dust emitted into the air, and soluble metals which may penetrate deep into the earth. We have numerous plans for preventing these issues.The BZS plant receives the zinc solution accumulated in a nearby valley as feed. In so doing, the maximum zinc wastewater left in the environment will be 1.5%.”
He continued, “Another plan aims at extracting zinc and BZS wastewater, with the cooperation of Iran Zinc Production Company, Iran Mineral Processing Company, Iran Zinc Mines Development Company, and Calcimin Co. The advantages of this plan are decreasing environmental pollutants and extracting the zinc resulting from the production processes in BZS. This process will be performed in the Iran Zinc Production Plant,near Calcimin Co. Moreover, we have plans for directing surface waters polluted with zinc to a pool.Contractors are currently developing this plan.We also plan to install dust control system for two Calcimin Co. plants, which are being installed and launched.”
Anjedani also pointed to strict regulations.According to him, following the recent Parliament law, the Department of Environment has increased the fines for pollutant industries from 1% to 3-5% of sales.
About the prospect of zinc export prices and sales, the CEO of Calcimin Co. explained,“Today, the price per ton of zinc ingots is about $2450. Based on our estimations, the consumer market does not wish to decrease the amount to less than $2400. We predict an increase in the price of zinc in LME, probably reaching or even exceeding $3000.”
He emphasized the fact that China, too, faces environmental challenges. According to him,China has recently encountered problems in production. There are also challenges for some zinc mines in Chile. On the other hand, the global demand is high, and production cannot satisfy market demand.

 

Zinc and lead production

Year ending on 19 March 2016

Year ending on 19 March 2017

Type of product

30.378 t

30.879 t

Zinc ingot

239.643 t

237.902 t

Raw zinc concentrate

64.764 t

67.005 t

Calcined zinc concentrate

7.561 t

7.757 t

Lead concentrate

Sales and exports

Year ending on 19 March 2016

Year ending on 19 March 2017

Year / Type of sales

564 t

1.210 t

Domestic sales of zinc ingot

37.203 t

28.813 t

Zinc ingot exports

7.318 t

8.615 t

Lead concentrate exports