Muscat – Vale, a global leader in iron ore production,
and Jinnan Iron & Steel Group, a renowned Chinese steelmaker in advanced
separation technologies, announced on Sunday a joint partnership to establish
Oman’s first iron ore concentration plant in SOHAR Port and Freezone.
With an initial investment exceeding $600mn,
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 announcement was made at a ceremony under
the patronage of H E Qais bin Mohammed al Yousef, Minister of Commerce,
Industry and Investment Promotion.
The Concentration Plant, scheduled to commence
operations by mid-2027, will process 18mn tonnes of iron ore annually,
producing 12.6mn tonnes of high-grade concentrate.
Vale will invest $227mn to connect the plant
to its agglomerate facilities in the region, while Jinnan will invest
approximately $400mn to build, own, and operate the plant, according to a press
statement.
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. Oman’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 Oman. As Jinnan’s
first project in the country, this collaboration highlights Oman’s appeal as a
destination for high-value industrial investments.
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, said, “This
investment is a key step in our long-term strategy to attract high-value
projects to Oman and foster 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 routes, 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.
