Over $600 million for first iron ore plant

BUSINESS REPORTER

MUSCAT, OCT 27

Under the auspices 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 prominent Chinese steelmaker in advanced separation technologies, announced a strategic partnership to establish Oman’s first iron ore concentration plant in SOHAR Port and Freezone.

With a combined investment surpassing $600 million, the facility aims to position Oman as a key supplier in the global Direct Reduction (DR) grade iron ore market, advancing the country’s ambitions in the steel industry.

Set to begin operations by mid-2027, the plant will process 18 million tonnes of iron ore annually, yielding 12.6 million tonnes of high-grade concentrate.

Vale will allocate $227 million to link the plant to its regional agglomerate facilities, while Jinnan will contribute around $400 million to build, own, and operate the plant.

A central feature of the partnership is innovation in resource efficiency and environmental responsibility. Iron ore imported from Brazil will undergo an advanced upgrade process at the plant, producing high-quality agglomerates with a reduced environmental footprint.

Positioned in SOHAR, the facility leverages Oman’s strategic location, bolstering the country’s role as a supplier to regional and international steel markets.

“The Concentration Plant is a cornerstone investment for Vale as we deepen our presence in the Middle East,” said Gustavo Pimenta, President of Vale. “

Oman’s location, coupled with its political stability and commitment to industrial growth, makes it an ideal partner.

This project strengthens our ability to meet global demand for high-grade iron ore, aligns with our sustainability goals, and brings long-term value to Oman and the global steel industry.”

The collaboration marks Jinnan’s first venture in Oman, underscoring the Sultanate of Oman’s attractiveness for high-value industrial projects. Zhang Tianfu, CEO of Jinnan Iron & Steel Group, highlighted the company’s contribution to sustainable steelmaking, saying, “This partnership brings together Jinnan’s expertise in modern low-carbon steelmaking with Vale’s iron ore production capabilities. Our aim is to redefine steelmaking in the Middle East, bringing efficiency and quality to the forefront, while supporting Oman’s industrial ambitions.”

SOHAR Port CEO, Emile Hoogsteden, echoed the significance of the project: “SOHAR is a global business hub, and this investment aligns with our strategy to attract high-value projects. Through our integrated logistics ecosystem, we are supporting Oman’s role in the global steel industry, enhancing trade and fostering sustainable growth.”

Beyond the steel sector, the plant is expected to generate significant economic benefits, including job creation, technological advancements, and increased export capacity. By incorporating advanced technologies, the facility aims to minimise its environmental impact, in line with Oman’s commitment to sustainable industrial development.