Vale + Jinnan Iron & Steel partner up for iron ore plant in Oman: Brazilian miner Vale and Chinese steel maker Jinnan Iron & Steel Group have partnered up with an initial investment of more than USD 600 mn to build the first Direct Reduction (DR) grade iron ore concentration plant in Oman’s Sohar port and freezone, according to a statement. The plant will produce pellets and briquettes for low-carbon steel and is scheduled to start operations by mid 2027.

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Vale plans to invest USD 227 mn to connect the plant to its facilities in the region, while Jinnan will invest c.USD 400 mn to build, own, and operate the plant, which will process 18 mn tons of iron ore annually, producing 12.6 mn tons of concentrate, according to the statement.

How does it work? Iron ore will be upgraded to a higher-grade concentrate to produce high quality pellets and briquettes, a material made of compressed biomass, with reduced environmental impact.

The plan aims to increase Oman’s export capacity, integrate it into the steel trade route, and strengthen the country’s position as a supplier to the regional and international steel market while minimizing its environmental footprint, the statement said.

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