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The Sohar plant is scheduled to start commissioning in mid-2027, processing 18 million metric tons of iron ore annually
BEIJING - Brazilian miner Vale , one of the worlds largest iron ore producers, said on Monday it had partnered with Chinas Jinnan Steel Group to build an iron ore beneficiation plant in Oman to produce high quality pellet.
With the front-end investment exceeding $600 million, the plant, which will be located in Omans Sohar port and free trade zone, will provide higher quality iron ore for producing pellet and hot briquetted iron (HBI) locally, reducing environmental impact, Vale said in a statement on its WeChat account.
The Sohar plant is scheduled to start commissioning in mid-2027, processing 18 million metric tons of iron ore annually to produce 12.6 million tons of high grade concentrate, it said.
"We are strengthening our capability to meet rising global demand for high grade iron ore and further expand our exposure in the Middle East region," said Gustavo Pimenta, chief executive officer (CEO) at Vale.
Vale will invest $227 million for the connection of the beneficiation plant and the pellet and HBI production facility while Jinnan Steel, a private steelmaker headquartered in north Chinas Shanxi province, will invest about $400 million for the building and the operation of the plant.
Vale did not disclose the equity share held by each party. |
