Oman-Brazil JV’s investment in local supply chain development tops $1.2bln

Oman-Brazil JV’s investment in local supply chain development tops $1.2bln

MUSCAT, OCT 2

Vale in Oman, a joint venture of Brazilian-based global mining giant Vale and OQ, says its mega iron ore pelletizing plant in Sohar Port has so far invested around $1.2 billion in the local supply chain as part of its commitment to in-country value (ICV) development.

This figure, according to a high-level official, represents the aggregate of investments made by Vale in Oman into the localization of its supply chain since it commenced operations in Sohar just over a decade ago in April 2011.

The Rio de Janeiro-headquartered mining and metals conglomerate has invested around $1.25 billion in an industrial complex comprising an iron ore pelletizing plant with a capacity of 9 million metric tonnes per year and a distribution centre with a through-put capacity of 40 million metric tons.

Sohar Port’s deep water capability allows for the company’s 400,000-tonne capacity Valemax vessels to bring iron ore for pelletising at the Sohar complex. Much of this output is shipped to Direct Reduction Iron (DRI) mills distributed around the Middle East region as feedstock in the production of steel products, including reinforcing bar (rebar).

Of late, its ramped up commitment to environmental, social and sustainability goals has earned Vale in Oman recognition for