Vale plans major increase in iron ore exports to Middle East

The FII Priority Summit, held on June 13 in Rio de Janeiro and sponsored by Saudi Arabia, brought together international CEOs and executives.

Currently, Vale exports 27 million tonnes of iron ore annually to the region, but Bartolomeo revealed plans to boost this figure to 70 million tonnes per year. While he did not provide a specific timeline for this increase, the plan hinges on the development of large-scale industrial complexes known as "mega-hubs."

These mega-hubs are designed to produce steel from higher grades of iron ore, which can help reduce emissions and increase productivity at steel plants. One key product expected to be produced at these mega-hubs is hot briquetted iron (HBI), which is particularly suitable for these industrial environments.

Bartolomeo identified potential locations for these mega-hubs, including Oman, where Vale already operates a pelletizing plant, as well as Abu Dhabi and Saudi Arabia. The Saudi Arabian hub is expected to cater to the domestic steel market, while the hubs in Oman and Abu Dhabi would primarily focus on exports.