Apple has not yet added many small features on iPhone that you will get on any cheap phones available. One such feature is copying the contacts from iPhone to SIM, though you can copy the SIM contacts to iPhone. Earlier when we were on firmware 1.x there was one app for that which copies to and from SIM and iPhone. But after firmware updates never heard of it.
Finally, SIManager was released on cydia which copies SIM contacts to and from iPhone, which is compatible with OS 3.1.2 and works great too. SIManager lets you copy SIM contacts to and from to iPhone and modify and delete(only SIM contacts) the contacts both on SIM and iPhone. What I noticed that it takes some time to read the contacts from SIM, though Fast Reader option is there, but it didn’t help much apart from that I didn’t face any issues while using it also took the backup of iPhone contacts to SIM.
Overall this is a must’ve utility and the best part is that it is for free.
SIManager is available on cydia under beyouriphone repo for free.