Vale and Jinnan Iron and Steel Group have announced an investment of OMR 240 million to establish the first iron ore concentration plant in Sohar Port and Free Zone, which will boost the growth of the iron and steel sector in the Sultanate of Oman and consolidate the country’s position as a key player in the global supply chain for direct reduced iron ore.
This came during the signing of the project establishment agreement between Vale (the world’s leading iron ore producer) and China’s Jinnan Iron and Steel Group, a sub-usufruct agreement between Jinnan and Sohar Port and Free Zone, and a partnership agreement between Vale and Sultan Qaboos University related to the development of commercial applications for the by-product resulting from the iron ore concentration laboratory.
The signing ceremony was sponsored by His Excellency Qais bin Mohammed Al Yousef, Minister of Commerce, Industry and Investment Promotion.
The plant is scheduled to start operations in mid-2027, where it will process 18 million tons of iron ore annually, and produce 12.6 million tons of high-quality iron concentrate. Vale will invest $227 million to connect the plant to its facilities, while Jinnan Group’s investments in the project amount to approximately $400 million to establish the plant, which it will own and operate.
This cooperation focuses on enhancing innovation, as the iron ore imported from Brazil will be highly concentrated to produce high-quality iron ore pellets with a minimal environmental footprint. Thanks to its strategic location, the new plant will enhance the Sultanate’s role as a major supplier to regional and international steel markets.
Gustavo Pimenta, CEO of Vale, stressed the importance of this investment, saying: “This iron ore concentration plant is one of Vale’s important investments, and supports the company’s plans to strengthen its presence in the Middle East region,” adding that the Sultanate of Oman is an attractive destination for investment and mega projects and a reliable partner for growth due to its political and economic stability, in addition to its continuous efforts to achieve industrial development.
He explained that the new plant is expected to contribute to enhancing Vale’s ability to meet the growing global demand for high-quality iron ore and achieve its sustainable goals.
He pointed out that this cooperation represents an important step for Vale, Jinnan Group and the Sultanate of Oman; it is also an affirmation of the country’s position as an attractive destination for major industrial investments, as it is expected that Jinnan Group’s advanced expertise in the field of magnetic separation technologies, in addition to Vale’s expertise and technologies, will contribute to creating an advanced manufacturing and production model with international standards in Sohar Port and Free Zone.
For his part, Zhang Tianfu, CEO of Jinnan Iron and Steel Group, said: This partnership is an ideal opportunity to combine the group’s extensive expertise in the low-carbon iron industry with Vale’s expertise and technologies in iron ore production, as this cooperation – to establish the plant in Sohar Port and Free Zone – will contribute to redefining the iron sector in the Middle East by enhancing efficiency and quality and placing them at the forefront of priorities.
Emil Hochstedt, CEO of Sohar Port, said that Sohar Port and Freezone represents an important gateway for companies to connect with global markets. He said: “This investment is a pivotal step in the framework of the corporation’s long-term strategy aimed at attracting high-value projects to the Sultanate of Oman,” explaining that the company relies on the integration of industrial, logistical and environmental aspects to achieve sustainable growth, with the aim of strengthening the Sultanate of Oman’s position as a major leader in the global steel industry, in addition to raising commercial efficiency and economic activity. The iron ore concentration plant is expected to return multiple economic benefits that are not limited to the iron industry only, but also include providing direct and indirect job opportunities, enhancing technological development, increasing exports, raising the country’s export capabilities, increasing the integration of the Sultanate of Oman within global steel trade routes, and supporting efforts to diversify the industrial base. By focusing on sustainability, the latest technologies will be employed to reduce the environmental footprint of the plant and ensure the efficient use of resources in line with the Sultanate of Oman’s commitment to sustainable and responsible growth in the industrial sector.
