17 October 2009
MUSCAT -- Brazilian mining giant Vale SA has signed a new ten-year contract with Saudi Basic Industries Corporation (SABIC) to supply Direct Reduction Pellets to its plant in Saudi Arabia. Under this new Long Term Contract, Vale will supply approximately 3.3 million tons of Direct Reduction Pellets. The contract was signed by Abdulaziz Sulaiman al Humaid, SABIC Vice-President for Metals and Hadeed Chairman of Board and by José Carlos Martins, Vale's Executive Director of Ferrous Minerals.
This contract is aligned with Vale and Saudi Basic Industries Corporation desire to further strengthen their relationship. It also highlights Vale's unique capability as a long-term reliable supplier of high quality iron ore and pellets, given its large-scale operations and excellence. Vale is the world's second largest diversified mining company in market capitalisation. Present in more than 30 countries, Vale is the world's largest producer of iron ore and pellets, key raw materials for the steel industry, and one of the largest producers of nickel, which is used to produce stainless steel, batteries, special alloys, chemicals and other products.
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 recently broke ground on a new industrial complex in Sohar which will comprise of a pelletising plant, bulk terminal and distribution centre with a capacity of 40 million metric tons.
The plant will have an annual nominal production capacity of 9 million metric tons of direct reduction pellets. Operations are scheduled to begin in the second half of 2010, with the estimated total cost of the project at approximately $1.4 billion.
MUSCAT -- Brazilian mining giant Vale SA has signed a new ten-year contract with Saudi Basic Industries Corporation (SABIC) to supply Direct Reduction Pellets to its plant in Saudi Arabia. Under this new Long Term Contract, Vale will supply approximately 3.3 million tons of Direct Reduction Pellets. The contract was signed by Abdulaziz Sulaiman al Humaid, SABIC Vice-President for Metals and Hadeed Chairman of Board and by José Carlos Martins, Vale's Executive Director of Ferrous Minerals.
This contract is aligned with Vale and Saudi Basic Industries Corporation desire to further strengthen their relationship. It also highlights Vale's unique capability as a long-term reliable supplier of high quality iron ore and pellets, given its large-scale operations and excellence. Vale is the world's second largest diversified mining company in market capitalisation. Present in more than 30 countries, Vale is the world's largest producer of iron ore and pellets, key raw materials for the steel industry, and one of the largest producers of nickel, which is used to produce stainless steel, batteries, special alloys, chemicals and other products.
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 recently broke ground on a new industrial complex in Sohar which will comprise of a pelletising plant, bulk terminal and distribution centre with a capacity of 40 million metric tons.
The plant will have an annual nominal production capacity of 9 million metric tons of direct reduction pellets. Operations are scheduled to begin in the second half of 2010, with the estimated total cost of the project at approximately $1.4 billion.
© Oman Daily Observer 2009
