Iran's Iritech to Construct High-Purity Gold Extraction Plant in Saghez
AI-generated from multiple sources. Verify before acting on this reporting.
TEHRAN — The International Engineering Company of Iran (Iritech) announced plans to construct a new gold extraction facility in Saghez, aiming to produce gold with 99.9% purity by 2026. The project marks a significant expansion in Iran’s domestic mining and metallurgical capabilities, targeting high-grade output for both domestic use and potential export markets.
The Saghez plant is designed to process raw ore into refined gold bullion meeting international standards for purity. Iritech stated that the facility will utilize advanced extraction technologies to ensure the final product reaches the specified 99.9% threshold. Construction is scheduled to begin immediately, with full operational capacity expected by early 2026.
Iran has been actively developing its mining sector in recent years, seeking to reduce reliance on imports and diversify its economy beyond oil and gas. The Saghez project aligns with broader government initiatives to boost non-oil exports and strengthen industrial infrastructure. Officials have emphasized the strategic importance of precious metals in stabilizing national reserves and supporting monetary policy.
Iritech, a state-affiliated engineering firm, has been involved in numerous infrastructure and industrial projects across the country. The company’s leadership indicated that the Saghez plant would represent one of the most sophisticated gold refining operations in the region. Technical specifications released by the firm highlight the use of automated processing systems and environmentally controlled extraction methods.
The location in Saghez, a city in western Iran, was selected due to its proximity to known mineral deposits and existing logistical networks. Regional authorities have expressed support for the project, citing potential job creation and economic stimulation for the area. Local officials anticipate that the plant will employ hundreds of workers during construction and operation phases.
However, the project faces challenges related to international sanctions and access to specialized equipment. Iran’s mining sector has long operated under restrictions that limit technology transfers and foreign investment. Iritech has not disclosed details regarding the origin of the machinery or the funding sources for the Saghez facility.
Industry analysts note that while the 99.9% purity target is achievable with modern technology, maintaining consistent output at that level requires rigorous quality control and stable supply chains. The success of the plant will depend on securing reliable ore inputs and navigating ongoing geopolitical constraints.
As of now, no timeline has been provided for the first batch of refined gold, and questions remain about the plant’s long-term viability under current economic conditions. Iritech has not commented on potential partnerships with foreign firms or the possibility of exporting the refined product.
The announcement comes amid growing interest in precious metals as a hedge against inflation and currency volatility. Iran’s push into high-purity gold production could reshape its role in regional commodity markets, though the extent of that impact remains to be seen.