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Vale partners with China's Jinnan steel to construct iron ore processing plant in Oman

Brazilian miner Vale , among the world's largest iron ore manufacturers, said on Monday it had actually partnered with China's Jinnan Steel Group to build an iron ore beneficiation plant in Oman to produce high quality pellet.

With the front-end investment exceeding $600 million, the plant, which will be found in Oman's Sohar port and free trade zone, will offer higher quality iron ore for producing pellet and hot briquetted iron (HBI) locally, minimizing ecological effect, Vale stated in a statement on its WeChat account.

The Sohar plant is set up to start commissioning in mid-2027, processing 18 million metric lots of iron ore every year to produce 12.6 million lots of high grade concentrate, it stated.

We are enhancing our ability to fulfill increasing worldwide need for high grade iron ore and additional broaden our exposure in the Middle East area, stated Gustavo Pimenta, chief executive officer (CEO) at Vale.

Vale will invest $227 million for the connection of the beneficiation plant and the pellet and HBI production center while Jinnan Steel, a personal steelmaker headquartered in north China's Shanxi province, will invest about $400 million for the structure and the operation of the plant.

Vale did not reveal the equity share held by each party.

(source: Reuters)