| Country |
: |
Oman |
| Project Value |
: |
USD 1,400,000,000 Estimated |
| Sector |
: |
Industry | Steel |
|
Consultants |
: |
Sohar Industrial Port Company
(Feasibility Study) |
Essar Gulf
(Engineering Design) |
Vale do Rio Doce (Vale)
(Feasibility Study) |
|
PMC |
: |
Jv of W J Towell and Company and Arcadis
|
|
Contractors |
: |
United Industrial Services Company (UNISCO)
(Construction - Steel Fabrication) |
Shanghai Zhenhua Port Machinery Company Limited
(Equipment Supply) |
Galfar Engineering & Contracting
(Civil Works) |
| Profile Type |
: |
Standalone Project
|
| Associated Projects |
: |
| Related Projects (1) |
|
| Completed
|
|
Completion: Dec 2011
|
|
|
|
| Background |
Vale Oman Pelletizing Company (VOPC)Vale Oman Pelletizing Company (VOPC) plans to establish an iron ore pelletizing plant at the Port of Sohar.
This is phase one of the project and it includes two parallel plants each with a capacity of 4.5 million t/y of iron pellets.
The company plans to increase the production capacity to 18 million t/y in phase 2 of the project.
A new deep draft facility will be built for the Sohar port to accommodate vessels of 23 m draught that will be used for the import of raw materials needed and the iron pellets exported.
Vale will supply 100% of the iron ore for the pellet plant.
Essar is the engineering design consultant.
SIPCSIPC and Companhia Vale do Rio Doce (CVRD) are the feasibility study consultants. |
| Latest Events |
In December 2011, commissioning of the second pellet plant and the project were completed. |
| Previous Events |
In September 2011, commissioning of the second pellet plant was ongoing.
In July 2011, commissioning of the second pellet plant started.
In June 2011, construction of the second pellet plant was ongoing.
In April 2011, the first pellet plant and the distribution center were completed.
On 5 March 2011, work on the project was resumed and trial tests at the first pellet plant were resumed.
On 1 March 2011, work on the project was stopped due to the political situation in Oman.
In February 2011, commissioning of the first pellet plant and the distribution center was ongoing.
In January 2011, commissioning of the first pellet plant and the distribution center started. 91% of the construction work was completed.
In December 2010, Galfar Engineering and ContractingGalfar Engineering and Contracting announced that it has completed all civil works for the project. The utilities area was commissioned and completed.
In September 2010, Vale Oman signed a three-year maintenance agreement with ABB Company.
In June 2010, Vale Oman signed an agreement with Majan Electricity CompanyMajan Electricity Company to supply 93MW of power for the project.
In May 2010, Vale entered into agreement with Oman Oil CompanyOman Oil Company to sell 30% of Vale Oman Pelletizing Company for USD 125 million.
In March 2010, construction was in progress.
In October 2009, the construction was ongoing. Vale's management was considering the development of phase two of the project to double the pelletizing capacity to around 18 million t/y. Phase two execution was subject to the availability of natural gas.
In April 2009, the USD 24 million PMC contract was awarded to the JV of Arcadis and W J Towell and CompanyW J Towell and Company.
On 2 March 2009, a cornerstone laying ceremony was held marking the start of construction.
In February 2009, a USD 36 million construction contract to fabricate steel structures for the plant was awarded to UNISCO (a division of the W J Towell GroupW J Towell Group) . Vale signed a contract with Shanghai Zenhua Port Machinery (ZPMC) for the supply of material handling equipment at a cost of USD 80 million.
In December 2008, the USD 48 million civil works contract was awarded to Galfar Engineering and ContractingGalfar Engineering and Contracting SAOG. A separate USD 27 million contract for construction of substations and yard facilities was awarded to W J Towell and CompanyW J Towell and Company.
In November 2008, the construction contract of four ore carriers (VLOC), each with the capacity of 400,000 tons was awarded to Oman Shipping Company (OSC)Oman Shipping Company (OSC).
In October 2008, SIPCSIPC and CVRD were finalizing the construction contracts.
In March 2007, the feasibility study was completed.
In December 2006, the feasibility study started.
In November 2006, a Memorandum of Understanding (MoU) was signed between SIPCSIPC and Companhia Vale do Rio Doce (CVRD) to conduct the feasibility study. |
| Scope of Work |
Construction of two 4.5 million t/y capacity iron ore pellet plants including:
- A port terminal for large vessels (400,000 t )
- A distribution center for up to 40 million t/y of iron ore and pellets piles |
| Financing Source |
Vale do Rio Doce will finance the project.
In November 2010, the company announced that it has allocated a global investment budget of USD 306 million to finance the project. |
| Related Projects |
|
| Project News |
|
|
| Schedule | Contract Phase/Phase | Description |
| Nov 2006 |
Study | MOU for freasibility study signed between Sohar Industrial Port CompanySohar Industrial Port Company and Companhia Vale do Rio Doce
|
| Dec 2006 |
Study | Feasibility study started
|
| Mar 2007 |
Study | Feasibility study completed
|
| Nov 2008 |
Construction | Contract for four ore carriers awarded to Oman Shipping Company
|
| Dec 2008 |
Construction | Civil works contract awarded to Galfar Engineering and ContractingGalfar Engineering and Contracting
|
| Feb 2009 |
Construction | Equipment supply contract awarded to Shanghai Zenhua Port Machinery Company | | | Construction | Steel fabrication contract awarded to UNISCO
|
| 02 Mar 2009 |
Construction | Construction started
|
| Apr 2009 |
PMC | Contract awarded to the JV of Arcadis and W J Towell and CompanyW J Towell and Company
|
| Jun 2010 |
Supply & Installation | Agreement signed with Majan Electricity CompanyMajan Electricity Company to supply power for the project
|
| Dec 2010 |
Construction | Civil works completed
|
| Jan 2011 |
Commissioning | Commissioning of the first pellet plant and distribution center started
|
| Apr 2011 |
Completion | First pellet plant and distribution center completed
|
| Jul 2011 |
Commissioning | Commissioning of the second pellet plant started
|
| Dec 2011 |
Completion | Project completed
|
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