Brazilian mining giant Vale and Chinese steel producer Jinnan Iron & Steel Group have announced a joint investment exceeding $600 million to establish Oman’s first iron ore concentration plant in Sohar. Expected to begin operations by mid-2027, this advanced facility will process 18 million tons of iron ore annually to produce 12.6 million tons of high-grade concentrate, positioning Oman as a central supplier of Direct Reduction (DR) grade iron ore for the global steel industry.
In this project, Vale will invest $227 million to connect the plant to its existing agglomeration facilities, while Jinnan will allocate around $400 million for the construction, ownership, and operation of the facility. Iron ore from Brazil will be refined at this site to produce higher-grade concentrate with reduced environmental impact, supporting a more efficient and sustainable production process.
Vale President Gustavo Pimenta highlighted Oman’s strategic role, saying, “Oman’s strategic location and commitment to industrial development present significant opportunities for the steel industry. This facility will not only expand Vale’s presence in the Middle East but also provide a sustainable solution to meet the growing global demand for high-quality iron ore.”
Jinnan Iron & Steel Group CEO Zhang Tianfu commented, “Through this collaboration with Vale, we aim to bring efficiency and quality to steel production in Oman. The facility in Sohar will support Oman’s industrial ambitions while contributing to low-carbon steel production.”
SOHAR Port CEO Emile Hoogsteden added, “This investment aligns with our goal of establishing Sohar as a global industrial and trade hub. With this plant, Oman will strengthen its position in the regional and global steel markets.”
Beyond the steel industry, the concentration plant is expected to bring broad economic benefits to Oman by generating both direct and indirect employment, facilitating technology transfer, and positioning the country as a key export player in global steel trade. Equipped with eco-friendly production technologies, the facility also supports Oman’s commitment to sustainable industrial development.
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