MUSCAT, OCT 29
Vale Oman is embarking on a major new chapter with a $600 million iron ore concentration plant at SOHAR Port and Freezone, developed in partnership with China’s Jinnan Iron & Steel Group. In an exclusive interview with the Observer, Vale Oman CEO Nasser bin Sulaiman al Azri outlined the motivations behind this ambitious project, emphasising Oman’s unique advantages as a regional hub for the iron and steel industry.
Al Azri cited Oman’s stability, strategic location, and skilled workforce as decisive factors in Vale’s continued investments in the country. “After 12 years of successful operation here, we felt it was the right time to grow,” he said. This new facility will leverage Vale’s global expertise, drawing on similar operations in Brazil and China, to strengthen Vale Oman's capacity to handle a diverse range of iron ore grades. The state-of-the-art plant is set to process 18 million tonnes of iron ore annually, producing 12.6 million tonnes of high-grade concentrate by mid-2027.
Discussing the potential impact of the new concentration plant, al Azri explained that this project will allow Vale Oman to produce iron ore pellets consistently, even with varying grades of ore.
“This will make the Suhar plant more competitive in both local and global markets, ensuring we meet our production target of 10 million tonnes of pellets each year,” he noted. With this increased stability, the company aims to position Oman as a steady supplier of DR-grade iron ore products worldwide.
Al Azri acknowledged that one of the biggest challenges would be ensuring the project does not disrupt Vale Oman’s existing operations.
“It’s a project with some interlinks between our plant and Jinnan’s operation, but we’re committed to keeping operational interruptions minimal,” he said. Coordinating closely with Jinnan, Vale is working to avoid significant production delays, aiming for a seamless integration of the new facility within its current setup.
Looking ahead, Al Azri highlighted the strategic importance of Oman in Vale’s regional expansion plans. “It’s not just Vale Oman’s strategy; it’s part of Vale’s global vision,” he explained, adding that the Middle East, and particularly Oman, are central to the company’s long-term goals.
“Vale feels very comfortable investing in Oman, which has proven to be an excellent partner,” Al Azri said, underscoring Vale’s confidence in the country’s business environment.
With this new concentration plant, Vale Oman is not only expanding its production capabilities but also reinforcing its commitment to Oman as a key player in the global iron and steel supply chain.
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