With Qais bin Mohammed Al Yousef, Minister of Commerce, Industry, and Investment Promotion, Vale, a global leader in iron ore production, and China’s Jinnan Iron & Steel Group, known for its expertise in advanced separation technologies, have announced a partnership to establish Oman’s first iron ore concentration plant in SOHAR Port and Freezone.
They are making an initial investment of $600 million, expecting to support the development of Oman’s iron and steel industry to establish their position as a key player in the global supply chain for Direct Reduction (DR) grade iron ore.
The Concentration Plant is scheduled to start operations by mid-2027, processing 18 million tons of iron ore annually, and producing 12.6 million tonnes of high-grade concentrate. Vale will contribute $227 million to connect he plant with its agglomeration facilities in the area, while Jinnan plans to invest around $400 million to construct, own, and manage the plant.
This collaboration is seen as a commitment to innovation, the iron ore shipped from Brazil will be upgraded into a higher-grade concentrate to produce high-quality agglomerates with reduced environmental impact.
Gustavo Pimenta, President of Vale, emphasized the significance of this investment, saying, “The Concentration Plant represents a key investment for Vale as we further build our presence in the Middle East. The Sultanate’s strategic location, with its stable political and economic climate and commitment to industrial development, makes it an ideal partner for our growth. This facility will enhance our ability to meet the increasing global demand for high-grade iron ore while also advancing our sustainability goals. We are confident that this partnership not only strengthens our operations in the region but also creates long-term value for the country and the global steel industry.”
The partnership between Vale and Jinnan marks a major milestone for both companies and the Sultanate of Oman. As Jinnan’s inaugural project in Oman, this collaboration underscores the nation’s attractiveness for high-value industrial investments.
Emile Hoogsteden, SOHAR Port CEO, commented, “SOHAR stands as a destination connecting businesses to the world. This investment is a key step in our long-term strategy to attract high-value projects to Oman and fostering a business-friendly environment.”
The plant will enhance Oman’s export potential by creating direct and indirect jobs, advancing technology, and increasing export capacity. This initiative will further integrate Oman into the global steel trade network, supporting efforts to diversify the nation’s industrial base.