MUSCAT: Vale, a Brazilian leader in iron ore production, is setting the stage to establish Oman as a global hub for sustainable steel production with a $600 million iron ore concentration plant at SOHAR Port and Freezone. Rogerio Nogueira, Vale’s Executive VP Iron Solutions, in an exclusive interview with the Observer, shared insights into the strategic vision behind this ambitious project and the anticipated impact on Oman’s industry.
According to Nogueira, Vale’s primary motivation for this plant is to support the global shift toward decarbonised steel production. The SOHAR facility is part of a broader effort to create a "clean supply chain," providing green metallics essential to the steelmaking industry’s transition away from coal — a significant source of emissions.
“We’re working with Oman to develop a clean supply chain that provides low-emission metallics for steelmakers,” Nogueira explained, highlighting that the plant will combine high-grade iron ore from Brazil with Oman’s natural gas resources and, eventually, green hydrogen.
Oman’s advantages in infrastructure, logistics, and competitive natural gas prices make it a prime location for this plant, which Nogueira views as a pivotal step in Vale’s vision for a sustainable steel industry. “Oman offers a unique combination of stability, logistics, and rule of law,” he said.
“These factors, along with talented local workforce, make it one of the best locations for producing green metallics that can supply Europe, Asia, and beyond.”
The selection of Jinnan Iron & Steel Group as a partner underscores Vale’s commitment to expertise and technological advancement. Jinnan, which has long partnered with Vale in China, is highly experienced in ore concentration.
“They’re among the best in the world at this process,” Nogueira noted. “This partnership ensures we’re working with top operators who understand our materials and can help us achieve a seamless operation here in Oman.”
With this facility, Vale and Jinnan aim to make Oman a competitive exporter of green metallics, tapping into growing demand in Europe and Asia as those regions seek lower-emission supply chains. Beyond its environmental benefits, Nogueira anticipates the plant will have significant economic advantages for Oman, including job creation in engineering, technical fields, and business management.
“We’ve historically employed over 80% Omanis, and we intend to apply the same philosophy in partnership with Jinnan here,” he shared.
This iron ore concentration plant, expected to open by mid-2027, is only the beginning, according to Nogueira. He envisions the project as a foundation for further investments in Oman, expanding the concept of a “mega-hub” for green metallics and transforming the country into a world leader in sustainable steel production. “This project is a stepping stone for other initiatives that will add even greater in-country value,” he said.
By combining resources from Brazil and Oman, Vale aims to build a sustainable supply chain that will strengthen Oman’s role in the global transition toward a decarbonised steel industry, benefiting both the national economy and international markets.
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