Posted on 16 May 2025
Vale is advancing the decarbonisation of its operations in Oman after entering into a head of agreement (HOA) with OQ Alternative Energy (OQAE), a subsidiary of state-owned OQ Group.
Signed during Oman Sustainability Week this week, the agreement paves the way for renewable energy solutions to power Vale’s pelletising plant at Sohar Port and meet the future energy demands of its planned Green Metallic Mega Hub in Duqm, Kallanish notes.
The HOA outlines a strategic framework for collaboration in key areas such as renewable energy supply, land allocation, and long-term infrastructure planning. Vale has committed to transition its Sohar pelletising plant to 100% renewable electricity by 2030, according to local news agencies.
Saleh Al Muslahi, chief executive of Mega Hubs-Middle East and North Africa at Vale, says: “Achieving large-scale decarbonisation demands more than ambitions, it requires strategic planning, strong partnerships, and reliable access to sustainable energy. Our agreement with OQAE embodies this approach. By aligning on demand aggregation, infrastructure readiness, and long-term supply models, we are creating the critical conditions to advance our transition in Sohar and unlock the potential of our future mega hub in Duqm.”
“Our collaboration with Vale reflects OQAE’s commitment to enabling the industrial sector’s transition to clean energy. This agreement goes beyond decarbonising a single site – it lays the foundation for a new model of sustainable industrial development in Oman, powered by renewables. Together, we are shaping a future where energy innovation drives national growth and global climate progress,” comments OQ Alternative Energy ceo Najla Zuhair Al Jamali.
Vale previously acquired the 30% stake belonging to OQ – formerly Oman Oil Company – in the iron ore pelletising plant, making the Brazilian miner the sole owner.
Vale’s Sohar Port-based Oman facility has an 11 million tonner/year production capacity. Last October, it signed an agreement with Chinese steelmaker Jinnan Iron & Steel Group to establish an iron ore concentration plant in Sohar, Oman, to supply feedstock for iron ore pellet and briquette production in the Middle East (see Kallanish passim).
Source:Kallanish
