Arab Steel Summit
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Arab Steel Summit

UAE: Vale signs a memorandum of understanding to establish a low-carbon iron production complex in Abu Dhabi

The Abu Dhabi Ports Group announced the conclusion of a memorandum of understanding with Vale, the world’s largest producer of iron ore and one of the largest logistics service providers in Brazil, under which a massive industrial complex will be established in Abu Dhabi, producing low-carbon materials for the iron and steel sector that will serve the local markets. It is exported by sea to foreign markets through a production process, considering low carbon dioxide emissions considerably.

The memorandum of understanding allocates space for an Industrial Complex establishment in Kizad, in addition to developing and managing a modern cargo handling facility in Khalifa Port, capable of receiving “Valley Max” ships with a capacity of up to 50 million tonnes of cargo annually.

From its side, the Abu Dhabi Ports Group will develop and manage the infrastructure for transporting iron ore and finished products to and from Khalifa Port and Kizad. It will also explore business cooperation opportunities with Vale to market and sell various by-products resulting from the manufacturing process in the UAE and the region.

The memorandum of understanding also includes cooperation in the maritime sector to explore opportunities for managing and operating tremendous raw material carriers and look forward to other opportunities to enhance the partnership between the two parties.

Captain Mohamed Juma Al Shamisi, Managing Director, and CEO of Abu Dhabi Ports Group, said, “The UAE is committed to adopting all means to reduce carbon emissions, as well as supporting all efforts to leave a positive impact on the global environment. Our signing of this agreement with Vale Company reflects our commitment to sustainable goals, in line with the insightful visions of our wise leadership”.

He added, “Growth and sustainability are two sides of the same coin, and our cooperation with Vale represents a major step in our contribution to the strategic initiative implementation to achieve climate neutrality by 2050.”

For his part, Eduardo Bartolomeo, CEO of Vale, said, “We are excited to seize this opportunity and build this complex in the United Arab Emirates, which occupies a strategic position through which it contributes to leaving a positive impact that helps us significantly reduce carbon dioxide emissions in the country. All over the world and our ability to spread this new idea of​using low-carbon technology in the production of reduced iron (HBI) confirms the success of our products globally.”

The Industrial Complex initiative contributes to Vale’s commitment to achieving a 15% reduction in net Scope 3 emissions by 2035.

In addition, Vale aims to reduce Scope 1 and Scope 2 emissions by 33% by 2030 and achieve carbon neutrality by 2050, in line with the Paris Climate Agreement and the trend towards sustainable mining.

Abu Dhabi Ports Group and Vale Company seek via this memorandum to take advantage of the strengths between them to raise the efficiency level of the global supply chain.



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