The Public Authority for Special Economic Zones and Free Zones signed a memorandum of understanding with the Japanese companies -Kobe Steel- and -Mitsui and Partners Ltd to establish a reduced iron plant in the Special Economic Zone at Duqm with a production capacity estimated at 5 million tonnes of reduced iron annually.
Likewise, the two companies signed a land reservation agreement with Duqm Port Company and another memorandum of understanding with Marafiq Company to supply the project with electricity and water.
The MoU was signed by the Public Authority for Special Economic Zones and Free Zones, His Excellency Dr Ali bin Masoud Al-Sunaidy, Chairman of the Authority. In contrast, it was signed by the two Japanese companies, Tetsuya Fukuda, Executive Managing Officer, and Chief Operating Officer of the Mineral Resources Business Unit at Mitsui & Co. and Masahiro Motoyuki, Executive Officer and Head of Engineering at Mitsui Corporation at Kobe Steel Company.
The land reservation agreement was signed by Reggy Vermeulen, CEO of Duqm Port, while the MoU with Marafiq was signed by Eng. Abdullah Al Hashimi, Managing Director of Marafiq.
This project is characterized by low carbon dioxide by using MEDREX technology that is commercially and technically proven in this field. The two companies aim to establish the project to provide one of the best solutions for carbon removal in the short term in the steel industry and to eliminate carbon by using specific measures represented in expanding production capacity, converting to hydrogen reduction and long-term carbon capture, utilization and storage.
Under the agreement, (Kobe Steel) and (Mitsui) companies will prepare a detailed business study to start producing ferrous metals with a low carbon dioxide content by 2027, and the product will be provided in the Asian and global markets and other markets such as Europe and others.
His Excellency Dr Ali bin Masoud Al-Sunaidy, Chairman of the General Authority for Special Economic Zones and Free Zones, stressed that “Bringing this unique project to the Special Economic Zone at Duqm represents a valuable addition to the group of large global mineral projects and renewable energy projects under construction in the region. In turn, it will attract a group of industries and other medium-sized and related businesses. It will also strengthen the steel industry sector in the Sultanate of Oman and enhance the in-country value contribution by supporting local companies and small and medium enterprises and providing job opportunities for Omani youth.”
Tetsuya Fukuda, Executive Director and Chief Operating Officer of the Mineral Resources Business Unit of Mitsui & Partners Company said that the Sultanate of Oman has extensive reserves of natural gas needed for reduced iron production. Pointing out that Mitsui Company has close relations with the Sultanate of Oman through existing businesses such as investments in oil and gas exploration, liquefied natural gas projects, and other projects.
Masahiro Motoyuki, CEO, and Head of Engineering Business at Kobe Steel Company emphasized, “Through Mitsui International’s strategic partnership and extensive business experience in the mineral resources and energy sector combined with Kobe Steel’s expertise in the steel industry and key engineering technologies. We will continue to contribute to reducing greenhouse gas emissions associated with the steel industry in hopes of achieving a carbon-neutral society.”
For his part, Reggie Vermeulen, CEO of the Port of Duqm, expressed his happiness that Mitsui and Kobe Steel have developed a plant for this type of low-carbon steel in the port of Duqm, which will significantly enhance the position of Mitsui in the Sultanate of Oman. It is considered a Japanese commercial and investment company with a global presence. Its partner, Kobe Steel, is world-famous for its iron and steel industry leadership by using its own MIDREX low-carbon direct reduction technology. He pointed out that the project is expected to bring significant foreign direct investment- in addition to its contribution to creating a large number of job opportunities in Duqm.
