Tuesday 19 / November / 2024
Muscat: Under the patronage of Qais bin Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion, Vale, a global leader in iron ore production, and Jinnan Iron & Steel Group, a renowned Chinese steelmaker in advanced separation technologies, announced a joint partnership to establish Oman’s first iron ore concentration plant in SOHAR Port and Freezone.
With an initial investment exceeding $600 million, the state-of-the-art facility is expected to support the development of Oman’s iron and steel industry, positioning the country as a key player in the global supply chain for Direct Reduction (DR) grade iron ore.
The Concentration Plant, scheduled to commence operations by mid 2027, will process 18 million tons of iron ore annually, producing 12.6 million tonnes of high-grade concentrate. Vale will invest $227 million to connect the plant to its agglomerate facilities in the region while Jinnan will invest approximately $400 million to build, own and operate the plant.
At the heart of this collaboration is a commitment to innovation; iron ore shipped from Brazil will be upgraded into a higher-grade concentrate to produce high-quality agglomerates with reduced environmental impact. With its strategic location, the new plant will therefore strengthen the Sultanate’s role as a key supplier to regional and international steel markets.
Gustavo Pimenta, President of Vale emphasised the significance of this investment saying, “The Concentration Plant represents a key investment for Vale as we further build our presence in the Middle East. The Sultanate’s strategic location, coupled with its stable political and economic climate and commitment to industrial development, makes it an ideal partner for our growth. This facility will enhance our ability to meet the increasing global demand for high-grade iron ore, while also advancing our sustainability goals. We are confident that this partnership not only strengthens our operations in the region but also creates long-term value for the country and the global steel industry.”
The joint partnership between Vale and Jinnan represents a significant milestone for both companies and the Sultanate of Oman. As Jinnan’s first project in the country, this collaboration highlights Oman’s appeal as a destination for high-value industrial investments. Jinnan, with its leading edge in magnetic separation technology, brings a wealth of experience that will integrate seamlessly with Vale’s expertise, creating a world-class production process in Sohar.
Zhang Tianfu, CEO of Jinnan Iron & Steel Group said, “This partnership is a unique opportunity to blend Jinnan’s rich experiences in modern low-carbon steelmaking with Vale’s proven expertise in iron ore production. By working together in SOHAR, we aim to redefine steelmaking in the Middle East, bringing efficiency and quality to the forefront. We are proud to play a role in supporting Oman’s industrial ambitions and look forward to the long-term impact of this project.”
Emile Hoogsteden SOHAR Port CEO commented, “SOHAR stands as a destination connecting businesses to the world. This investment is a key step in our long-term strategy to attract high-value projects to Oman and fostering a business-friendly environment. Through our fully integrated industrial and logistics ecosystem, we are driving sustainable growth and solidifying Oman as a key player in the global steel industry, enhancing trade efficiency and boosting economic development."
The Concentration Plant is expected to create economic benefits beyond the steel industry. By generating direct and indirect employment, driving technological advancement, and increasing export capacity, the plant will boost Oman’s export capabilities and further integrate the Sultanate into global steel trade route, supporting efforts to diversify the industrial base. With an emphasis on sustainability, the facility will utilise advanced technologies to minimise its environmental footprint, ensuring efficient resource use, in line with Oman’s commitment to responsible and sustainable industrial growth.
