A groundbreaking partnership between global mining giant Vale and China's Jinnan Iron & Steel Group has been announced under the patronage of Oman's Minister of Commerce, Industry and Investment Promotion, Qais bin Mohammed Al Yousef. The collaboration marks a significant milestone in Oman's industrial development with the establishment of the country's first iron ore concentration plant at SOHAR Port and Freezone.
The ambitious project, representing an initial investment exceeding $600 million, will see Vale contributing $227 million for connecting the plant to its regional agglomerate facilities, while Jinnan will invest approximately $400 million in building and operating the facility. The state-of-the-art plant is scheduled to begin operations by mid-2027, with an annual processing capacity of 18 million metric tons of iron ore, yielding 12.6 million metric tons of high-grade concentrate.
The strategic partnership leverages Vale's expertise in iron ore production and Jinnan's advanced magnetic separation technology to create a world-class facility. The plant will upgrade iron ore shipped from Brazil into higher-grade concentrate, enabling the production of premium quality agglomerates with reduced environmental impact. This technological advancement positions Oman as a key supplier in the global steel market.
SOHAR Port's strategic location plays a crucial role in the project's viability, offering excellent connectivity to international markets. As highlighted by SOHAR Port CEO Emile Hoogsteden, the facility will benefit from the port's integrated industrial and logistics ecosystem, enhancing trade efficiency and boosting economic development in the region.
The project demonstrates significant economic potential beyond steel production. It is expected to generate substantial employment opportunities, both direct and indirect, while driving technological advancement in the region. The facility's emphasis on sustainability aligns with Oman's commitment to responsible industrial development, incorporating advanced technologies to minimize environmental impact.
Vale's President Gustavo Pimenta emphasized the strategic importance of the investment, citing Oman's stable political and economic climate as key factors in the decision-making process. The project represents Vale's commitment to expanding its Middle Eastern presence while meeting growing global demand for high-grade iron ore.
Zhang Tianfu, CEO of Jinnan Iron & Steel Group, highlighted the unique opportunity to combine their expertise in modern low-carbon steelmaking with Vale's iron ore production capabilities. This collaboration marks Jinnan's first project in Oman, underlining the Sultanate's growing appeal as a destination for high-value industrial investments and its potential to become a significant player in the global steel industry.
