Vale has announced that its iron ore pelletizing plant at Sohar Port will be powered entirely by renewable electricity by 2030, aligning with the company’s global commitment to decarbonize operations.
Nasser Al Azri, CEO of Vale in Oman, highlighted that the transition to green energy supports regional steel mills in their move toward low-carbon steel production.
“From our state-of-the-art pelletizing plant in Sohar to the upcoming iron ore concentration plant, we are proud to support the region’s vision for sustainable industrial growth while reinforcing Oman’s role as a key player in the global steel supply chain,” he stated in an interview with CNBC Arabia.
The company plans to source its electricity requirements from renewable energy by 2030. Additionally, its new iron ore concentration plant, developed in partnership with Jinnan Iron & Steel Group at Sohar, will play a crucial role in reducing CO2 emissions. The plant, with an investment exceeding USD600 mln, is slated to begin operations by mid-2027. It will process 18 mln tons of low-grade ore annually, producing 12.6 mln tons of high-grade concentrate for low-carbon steel production.
The Gulf region remains a key market for Vale’s output, with exports targeting the UAE, Saudi Arabia, Qatar, India, East Africa, and Europe, where green steel is gaining momentum. Oman’s strategic location and proximity to these markets significantly bolster Vale’s regional operations.
Vale is also exploring partnerships in the UAE and Saudi Arabia to expand its footprint in the emerging low-carbon steel sector, reflecting the region’s ambitions to lead in green steel production.
