São Paulo – Vale has started the test phase of its pelletizing plant in Oman. The complex includes two pelletizing units, with production capacity of 4.5 million tonnes each, as well as a distribution centre and a deep-water terminal. Commercial operation should begin in March and the first shipment should take place in May this year.
The Brazilian company owns 70% of the complex, located in the industrial area of Sohar port, in the north of the Arab country. The remaining 30% belongs to Oman Oil Company, the Omani state-owned oil company. Share sale took place in May 2010, for the value of US$ 125 million.
The estimated investment in the plant is US$ 1.356 billion. With the new plant, Vale will have added to its capacity the production of over 9 million tonnes a year of direct reduction pellets. The throughput of the distribution centre will be 40 million pellets a year.
The deep water terminal is being built by Sohar Industrial Port Company and will be operated exclusively by Vale. The company also signed an exclusive long-term agreement with Oman Shipping Company for the construction of four vessels with capacities of 400,000 tonnes, to be dedicated to the transport of ore.
Vale has been operating in Oman since 2007 and among the activities that the organisation has already promoted to strengthen its brand in the Arab country is the sponsorship of a friendly game between the Brazilian and Omani national teams, in November 2009.
*Translated by Mark Ament
