The result of sampling from Jajarm bauxite mines indicated that the quality of its bauxite was suitable enough to justify establishment of an alumina refining factory in its neighborhood. A systematic method was launched for this project with the help of the United Nations Industrial Development Organization (UNIDO) after the victory of the 1879 Islamic Revolution and during the years 1362 (1983) up to 1369 (1990).
Complementary studies were conducted for this project with the assistance of Aluterv Institute of Hungary and financial support of UNIDO. Laboratory tests were conducted at Aluterv and at Wami Institute of former Soviet Union and were completed between 1365 (1986) and 1367 (1988) which indicated that the Bayer-dissolution tube method is preferable both in terms of production and investment costs for Jajarm bauxite. With regard to the process of technological developments it is among modern development methods.
In the years 1367 (1988) to 1369 (1990) technical-economic studies for alumina production from Jajarm bauxite ore through Bayer-dissolution tube method with the cooperation of Aluterv Institute of Hungary were conducted for a 150 thousand ton unit. In this regard a large-scale pilot sample was processed in the laboratory of the institute and Fositiv diamond factory of Hungary and the parameters for the proposed technology and technical economic estimates for the establishment of the industrial unit were presented.
From among the invited firms Technoexport Company which had participated in the tender on the basis of technical knowhow of Ziyar factory of Czechoslovakia and cooperation of the Chepos engineering company, won the tender. After failure of Technoexport in launching the production line due to wrong design, the company was evicted. In order to prevent further delay in the operation of the project at that juncture NFC Company from China was selected to remove the problems and operate the factory.
In the calendar year 1381 (2002) after implementation of the required reforms in the valves, flash tanks and addition of digesters, etc. the production line became operational with the imported bauxite (from India) and after a year (2003) it started its formal operation by using Jajarm bauxite.
After termination of undertakings of NFC all the operational stages (production, maintenance and repair) are now done by Iranian experts.