Vale, a leading iron ore miner, and China’s Jinnan Iron & Steel Group have announced a partnership to establish Oman’s first iron ore concentration plant at Sohar Port and Freezone. With an initial investment of over USD 600 mln, the cutting-edge facility aims to bolster Oman’s iron and steel industry and position the country as a significant player in the global supply chain for Direct Reduction (DR) grade iron ore, according to the companies.
Jinnan will leverage its advanced magnetic separation technology, combined with Vale’s production expertise, to create a world-class production process at Sohar. Set to begin operations by mid-2027, the plant will process 18 mln tons of iron ore annually, yielding 12.6 mln tons of high-grade concentrate. Vale will invest USD 227 mln to link the plant with its agglomeration facilities, while Jinnan will invest about USD 400 mln to build, own, and operate the plant.
Iron ore shipped from Brazil will be refined into high-grade concentrate in Oman, enabling local production of higher-quality iron ore pellets and hot briquetted iron (HBI) with a lower environmental footprint. Strategically located, the new plant will strengthen Oman’s role as a key supplier in regional and international steel markets, Vale stated.
