Global Arab Network | Oman Oil Company buys a share in Vale Oman Iron Ore Pelletizing Plant

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Oman Oil Company buys a share in Vale Oman Iron Ore Pelletizing Plant

Saturday, 29 May 2010 16:49

Oman (Muscat) - Oman Oil Company SAOC (OOC) today signed an agreement to buy 30% in Sohar-based Vale Oman Pelletizing Company LLC ("VOPC").

The Agreement was signed on behalf of the company by Mohammed bin Nasser al Khusaibi, Secretary General of the Ministry of National Economy, member of the Board of Directors of OOC, and on behalf of Vale International Roger Agnelli, Chief Executive Officer of Vale. The signing ceremony was attended by a number of officials in both companies.

The plant is capable of producing 9 million tonnes of direct reduction iron ore pellets annually with the option to expand production in future. The iron ore palletizing plant is the first to be set up by Vale outside Brazil. The production of the plant will be exported to different countries of the world. The iron ore will be imported from Vale mines in Brazil.

The iron ore pelletizing plant is scheduled to start production in late 2010 and full commissioning by mid 2011 Advanced pollution control and safety systems will ensure compliance with Omani and international environmental and safety standards.

Oman Shipping Company is constructing four very large ore carrier ships (VLOC), each with a capacity of 400 thousand tonnes The carrier ships will be used to carry iron ore from Vale's mines in Brazil to Sohar Port as part of a long -term agreement between Vale and Oman Shipping Company.

Commenting on this occasion, Mohammed bin Nasser al Khusaibi said, "This agreement is the latest investment by Oman Oil Company and the first in the iron ore business in partnership with Vale, the largest iron ore company in the world.

He added that the project will diversify the company's investment portfolio and create more job opportunities and training for the Omani workforce".

On behalf of Vale, the Chief Executive officer, Agnelli said "Oman Oil Company is a key partner with Vale in this region and this agreement is a perfect example of Vale's global business strategy of forming long term partnerships with key local players to support the development of large scale green-field projects. He hailed the key role of the Sultanate's Government in providing a positive business environment and promoting major industrial investments, such as, this plant and for its strong support for the development of this project over several months.

Agnelli affirmed that the iron ore palletizing plant and the distribution centres will play an important role in the Sultanate's efforts to diversify the Omani economy and to help promote more foreign private sector investment. He hoped that the agreement between Vale and OOC will also enhance Vale's role in the region's iron and steel market, creating substantial value for Vale's shareholders and for the Omani community

Oman Oil Company SAOC (OOC) is a company wholly owned by the Government of the Sultanate of Oman. The company was established in 1996 to give the Government another vehicle for pursuing investment opportunities in the energy sector both inside and outside Oman. OOC has managed, in a relatively short period of time, to contribute to the development of many important projects in energy and energy related areas. Through this participation, OOC plays a key role in the Sultanate's efforts to diversify the Omani economy and help generate Omani and foreign private sector investment.

Local and international investments' portfolio of OOC include more than 30 projects covering the areas of exploration and production of petroleum, infrastructure, petrochemicals, transport, energy, refining ,marketing and mining

VALE is the world's second largest diversified mining company by market capitalization. Present in over thirty countries, Vale is the world's largest producer of iron ore and pellets, key raw materials for the steel industry. The company also produces copper, manganese, ferroalloys, bauxite, alumina, aluminium and coal, among other raw materials important to the global industrial sector and present in people's daily lives.

Vale set up its Middle East office in Muscat in December 2007 with a view to expanding its presence in this key market.

The Company is currently building a new industrial complex in the wilayat of Sohar which will comprise a pelletizing plant, iron ore bulk terminal and distribution centre. (ONA)

Global Arab Network

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