Posted on 17 Feb 2023
Vale has acquired the 30% stake belonging to OQ – formerly Oman Oil Company – in Vale’s Oman iron ore pelletising plant, making the Brazilian steelmaker the sole owner, Kallanish notes.
"The ownership transfer is expected to conclude in the second quarter of 2023 and aligns with OQ's efforts to attract foreign investments and enter partnerships that maximise the utilisation of Omani natural resources,” Oman’s state news agency reports.
Vale declined to comment.
Vale in Oman was established in 2007 by Vale SA and OQ, each having 70% and 30% shares, respectively. The company owns and operates an iron ore pelletising plant with a production capacity of over 9 million tonnes/year and a distribution centre with 40m t/y throughput capacity.
Vale is experiencing growth in the region with the introduction of a briquetting plant in Sohar, Oman, to be approved by Vale’s board in mid-2023, which the firm says will significantly contribute towards employment opportunities in Oman and enhance cross-border trade.
"OQ has been an invaluable partner in Oman guiding Vale through several successful business decisions and investments in the region ... In line with our strategic objectives to be a leader in sustainable mining and a talent-driven organisation, Vale in Oman continues to bolster its expansion in Oman and the region in line with global net zero objectives, while investing in local human capital and in-country value initiatives,” Vale Oman chairman Guilherme Reinisch Neves is quoted as saying.
Last November, Vale inked a memorandum of understanding with Oman’s commerce, industry and investment promotion ministry to develop a mega hub at Special Economic Zone at Duqm and to produce hot-briquetted iron in Sohar using natural gas. Vale's ambitions for growth in the region continued with signings of MoUs with Emirates Steel Arkan to develop a mega hub at Khalifa Economic Zone Abu Dhabi, and Saudi Arabia's National Industrial Development Center to set up a pelletising plant at Ras Al Khair Industrial City.
Vale Oman’s pellet output surged in the first nine months of 2022 by 30.5% or 1.69mt on-year to 7.23mt.
Source:Kallanish
