Major investment in Sohar iron ore plant
Vale and Jinnan Group have announced an investment in Oman of 240 million OMR to establish an iron ore concentration plant at Sohar Port and Freezone.
The announcement followed the signing of an agreement to establish the project between Vale, a global leader in iron ore production, and Jinnan Iron and Steel Group, a major Chinese iron and steel company.
Additional agreements were also signed, including a sub-lease agreement between Jinnan and Sohar Port and Freezone and a partnership between Vale and Sultan Qaboos University to develop commercial applications for by products from the iron ore concentration plant.
The signing ceremony was presided over by Qais bin Mohammed Al Yousef, Minister of Commerce, Industry, and Investment Promotion.
The plant is expected to start operations by mid 2027, processing 18 million tonnes of iron ore annually to produce 12.6 million tonnes of high quality iron concentrate.
At the heart of this collaboration is a commitment to innovation. Iron ore will be upgraded into a higher-grade concentrate to produce high-quality pellets and, in the future, briquettes with reduced environmental impact. With its strategic location, the new plant will strengthen Oman’s role as a key supplier to regional and international steel markets.
Gustavo Pimento, President of Vale stated that this investment is significant for the company, as it supports its plans to strengthen its presence in the Middle East. He noted that Oman is an attractive investment destination and a reliable growth partner due to its political and economic stability and ongoing efforts to achieve industrial development.
Zhang Tianfu, CEO of Jindal Group for Iron and Steel commented that this partnership is an ideal opportunity to combine Jinnan’s extensive expertise in low-carbon iron production with Vale’s iron ore production technology.
He added that establishing this plant in Sohar Port and Freezone will redefine the iron industry in the Middle East by prioritising efficiency and quality.
Emile Hoogsteden, CEO of Sohar Port and Deputy CEO of Sohar Freezone noted that the Port and Free Zone are critical gateways connecting businesses to global markets.
“This investment is a key step in our long-term strategy to attract high-value projects to Oman and fostering a business-friendly environment,” he said.
“Through our fully integrated industrial and logistics ecosystem, we are driving sustainable growth and solidifying Oman as a key player in the global steel industry, enhancing trade efficiency and boosting economic development,” he added