Muscat – Vale, a global leader in iron ore production, and Jinnan Iron & Steel Group, a renowned Chinese steelmaker, have announced the groundbreaking partnership to establish the plant at Sohar Port and Freezone, with an initial investment exceeding USD 600 million.

This state-of-the-art facility is expected to support the development of Oman’s iron and steel industry, positioning the country as a key player in the global supply chain for Direct Reduction (DR) grade iron ore.

The Concentration Plant is scheduled to begin operations by mid-2027, with plans to process 18 million tons of iron ore annually, yielding 12.6 million tons of high-grade concentrate. Vale will invest USD 227 million to connect the plant to its agglomerate facilities in the region, while Jinnan will contribute approximately USD 400 million to build, own, and operate the facility.

Central to this collaboration is a commitment to innovation. Iron ore sourced from Brazil will be upgraded into a higher-grade concentrate, facilitating the production of high-quality agglomerates with a reduced environmental impact. The strategic location of the new plant is expected to bolster Oman’s role as a critical supplier to both regional and international steel markets.

Gustavo Pimenta, President of Vale, highlighted the significance of this investment, stating, “The Concentration Plant represents a key investment for Vale as we further build our presence in the Middle East. The Sultanate’s strategic location, stable political and economic climate, and commitment to industrial development make it an ideal partner for our growth. This facility will enhance our ability to meet the increasing global demand for high-grade iron ore while advancing our sustainability goals. We are confident this partnership will create long-term value for both the country and the global steel industry.”

This joint venture marks a significant milestone for both Vale and Jinnan, as it is Jinnan’s first project in Oman, showcasing the country’s appeal for high-value industrial investments. With its expertise in magnetic separation technology, Jinnan aims to integrate seamlessly with Vale’s capabilities, creating a world-class production process in Sohar.

Expressing optimism about the partnership, Zhang Tianfu, CEO of Jinnan Iron & Steel Group, stated: “This collaboration provides a unique opportunity to blend Jinnan’s expertise in modern low-carbon steelmaking with Vale’s proven proficiency in iron ore production. Together in SOHAR, we aim to redefine steelmaking in the Middle East, prioritizing efficiency and quality. We are proud to support Oman’s industrial ambitions and anticipate the long-term impact of this project.”

Emile Hoogsteden, CEO of SOHAR Port, commented on the investment’s significance, stating, “SOHAR stands as a destination connecting businesses to the world. This investment is a key step in our long-term strategy to attract high-value projects to Oman and foster a business-friendly environment. Our fully integrated industrial and logistics ecosystem drives sustainable growth, solidifying Oman as a key player in the global steel industry while enhancing trade efficiency and boosting economic development.”

The Concentration Plant is projected to generate economic benefits that extend beyond the steel industry. By creating direct and indirect employment opportunities, driving technological advancements, and increasing export capacity, the plant will enhance Oman’s export capabilities and further integrate the Sultanate into global steel trade routes. With an emphasis on sustainability, the facility will employ advanced technologies to minimize its environmental footprint, aligning with Oman’s commitment to responsible and sustainable industrial growth.