Vale and Jinnan Steel’s joint venture in Oman has signed an agreement with China’s MCC Changtian International Engineering Company to build an iron ore beneficiation plant in Sohar.
The project includes constructing the iron ore beneficiation plant, a support yard, long-distance slurry transportation, and tailings dry stacking. With an investment exceeding USD 600 mln, the plant is set to begin operations by mid-2027. It will process 18 mln tons of low-grade ore annually, yielding 12.6 mln tons of high-grade concentrate for low-carbon steel production.
In October last year, Vale, a leading iron ore miner, and China’s Jinnan Steel announced their partnership to establish Oman’s first iron ore concentration plant at Sohar Port and Freezone. Vale will invest USD 227 mln to integrate the plant with its agglomeration facilities, while Jinnan will invest around USD 400 mln to build, own, and operate it.
Iron ore shipped from Brazil will be refined in Oman to produce high-grade concentrate, supporting the local production of premium iron ore pellets and hot briquetted iron (HBI) with a lower environmental footprint. Strategically located, the plant will enhance Oman’s role as a key supplier in regional and international steel markets, Vale stated last year.