Oman sees new construction plant with Chinese businesses

On Monday, Vale and Jinnan Iron & Steel Group announced a joint partnership to establish an iron ore concentration plant in Sohar Port and Freezone in Oman.

With the initial investment exceeding $600 million, the facility will supply high-quality iron ore for the production of pellets and briquettes in the region. This will be key for the manufacturing of low-carbon steel products via direct reduction, it said.

The Sohar concentration plant, scheduled to commence operations by mid-2027, will process 18 million metric tons of iron ore annually and produce 12.6 million tons of high-grade concentrate, the company said.

Vale will invest $227 million to connect the plant to its agglomerate facilities in the region, with Jinnan planning to invest approximately $400 million to build, own and operate the plant.

"The Sohar concentration plant represents a key investment for Vale as we enhance our ability to meet the increasing global demand for high-grade iron ore and further build our presence in the Middle East," said Gustavo Pimenta, President of Vale.

"This project reinforces our partnership with China through Jinnan. We are confident that this partnership not only strengthens our operations in the region but also creates long-term value for the global steel industry."

Zhang Tianfu, CEO of Jinnan Iron & Steel Group, said the partnership will blend Jinnan's rich experiences in modern low-carbon steelmaking with Vale's proven expertise in iron ore production.

The group aims to redefine steelmaking in the Middle East, bringing efficiency and quality to the forefront, said Zhang.