São Paulo – Brazilian mining company Vale has temporarily interrupted the testing phase of its unit in Oman, in the Middle East, due to the political and social instability that has started in the country. The mining company announced, last month, the start of operations of the pelletizing plant in Oman and, at a press conference, last Friday (15), company executives said that the crisis in the region should not interfere in its business, as in Oman there was no news of the protests.
Information regarding the social and political crisis in Oman, however, started appearing in the news last week. "As a cautionary measure, Vale interrupted the commissioning works (testing phase) of its first pelletizing plant until the situation comes back to normal," said Vale, in a press statement. Employees, mostly native, were told to stay at home.
The company informs, however, that the installations in Sohar port complex, where there are also other industries, are preserved and under protection by local authorities. Sohar is the most developed city of Oman and its port was visited by Development, Industry and Foreign Trade minister Miguel Jorge, last year. In the pelletizing unit in Oman, where Vale has been operation since 2007, the mining company should produce nine million tonnes of pellets a year.
The crisis in the remaining Arab countries, like Libya and Egypt, has not affected company business. According to information disclosed to the press last week, the mining company has a large client in Egypt and a large one in Libya, but the volume sold to both is not even 1% of all company trade.
The organisation recently disclosed record production, revenues and profits in 2010. The company’s production of iron ore reached 308 million tonnes last year, revenues reached US$ 45.2 billion and the profit reached US$ 17 billion. The company also announced excellent perspectives for performance in 2011.
*Translated by Mark Ament
