Vale, a global leader in sustainable mining, has reported to take a major step toward green steel production by signing a land reservation agreement with the Royal Commission of Jubail and Yanbu in Saudi Arabia. The agreement paves the way for the development of a Mega Hub at Ras Al-Khair Industrial City, marking a strategic milestone in Vale’s journey towards net-zero steelmaking.
The Mega Hub, set to be developed in two phases, aims to produce up to 12 million tons of cold-briquetted iron ore (CBI) annually. This innovative solution is expected to significantly accelerate the steel industry’s transition to net-zero emissions.
Rogério Nogueira, Executive Vice President of Commercial and New Business at Vale said, “This agreement is more than a milestone for Vale; it represents our first step towards reshaping the future of the steel industry in the Middle East. The Khair Mega Hub will serve as a model for integrating advanced technologies with sustainable practices, driving not only environmental impact but also economic value.”
The Ras Al-Khair Mega Hub, along with planned hubs in Oman and the UAE, will supply high-grade iron ore and foster collaborations among Vale, steel producers, and other industrial players. These hubs aim to position the region as a leader in green steel production, catering to local, regional and international markets, driving Saudi Arabia’s ambition to become a world-leading industrial powerhouse in line with its Vision 2030.
The project is said to align with Vale’s sustainability targets, including a 15% reduction in net scope 3 emissions by 2035 and a 33% reduction in absolute scope 1 and 2 emissions by 2030. These efforts by Vale is said to lead the evolution toward sustainable mining and steelmaking, says the company.