Bahrain Steel to supply iron ore pellets to KSA’s first green steel plant: Iron ore pellet producer Bahrain Steel has signed a letter of intent with Indian multinational conglomerate Essar Group to supply 4 mn tons of iron ore pellets per year to Essar’s USD 4.5 bn green steel project in Ras Al Khair, Saudi Arabia, according to a statement released on Thursday.

What we know: Essar said they submitted a proposal to the Saudi Industry Development Fund for the green steel plant back in March, with a target to produce 4 mn tons a year of casting and hot-strip steel, as well as 1 mn tons of cold-roll coil capacity and tin plates a year. The agreement will cover 50% of the raw material supply of iron ore pellets needed for the plant, the statement notes. Commercial production of the plant is expected to begin in 2027 and will cater to multiple sectors including construction, oil and gas, automotive, packaging, and general engineering.

About Bahrain Steel: Bahrain Steel is the only GCC-owned pellet producer and leading supplier of high-quality DR grade pellets to all integrated steel producers in the region, according to the statement. It is a subsidiary of Foulath Holding, an investment company focused on steel and steel-related projects in the MENA region, and which oversees more than USD 2.4 bn of assets through Bahrain Steel and its other subsidiary SULB.

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