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Vale Commences Pellet Production in Oman

05/02/2011 - Vale has started pellet production at its first pelletizing plant of its industrial complex in the coastal city of Sohar, Sultanate of Oman. The US$1.356 billion plant and distribution center will serve as a hub supplying iron ore products in the Middle East, North Africa, and India.

Vale has started pellet production at its first pelletizing plant of its industrial complex in the coastal city of Sohar, Sultanate of Oman. The US$1.356 billion pelletizing plant and distribution center will serve as a hub supplying iron ore products in the Middle East, North Africa, and India.
 
Vale’s industrial complex in Sohar is comprised of a two-unit pelletizing plant, each with a nominal capacity of 4.5 million tonnes of direct reduction pellets per year, in addition to a distribution center with an annual capacity of 40 million tonnes per year. In May 2010, Vale announced a partnership with the Omani government through the sale of a 30% stake in the pelletizing plant to Oman Oil Co.
 
“Oman’s strategic location outside the Arabian gulf, with the advantage of deep water seas, and its heavy infrastructure investments to provide leading logistics networks, advanced energy, and power supply technologies and world class facilities at Sohar Industrial Port, were key to our decision to establish our operations in the Sultanate,” said Roger Agnelli, Vale CEO.
 
Vale contracted Sohar Industrial Port Co. to build a 1.5-km jetty, which upon completion this June will be exclusively used and operated by Vale. Three ship loaders and one ship unloader have already been delivered. A long-term agreement was also signed with Oman Shipping Co. for the construction of four very large iron ore carriers (VLOCs) with a loading capacity of 400,000 tonnes to be leased to Vale.
 
To date, Vale has invested US$11.3 million in specialized recruitment and training programs that aim to generate 720 direct and 1800 indirect jobs. 
 
Vale also has invested a total of US$40 million in green technology, including an advanced 100% water recycling system as well as a 3150-m wind fence surrounding the Industrial Complex to control dust emissions. The company also made its plant in Sohar the first to use ‘Grate Kiln’ furnace for the production of pellets, which reportedly will provide consistent quality results and an end product with high compression, low abrasion, and perfect roundness.
 
Vale is the world’s second-largest mining and metal company in market value, with assets of more than US$100 billion. It is the world leader in production and export of iron ore and pellets and an important producer of nickel, copper concentrate, bauxite, alumina, potassium, kaolin, manganese, and iron alloys. Headquartered in Brazil, Vale is present in 38 countries, directly employing more than 119,000 people across the world and a further 54,000 on projects.