22 February 2011

MUSCAT: Vale has announced that the completion and operation of its first pelletising plant is scheduled for March 2011, with the production and release of its first shipment of pellets expected in May this year.

Surpassing yet another milestone in the construction of its project in Sohar, the industrial complex is currently in its commissioning phase.

The project encompasses two units, each with a nominal production capacity of 4.5 million tonnes of direct reduction pellets per year, as well as a distribution centre with an annual capacity of 40 million tonnes and a deep-water bulk jetty.

To date, Vale has received 220,000 tonnes of pellet feed and 60,000 tonnes of anthracite which together with the locally-supplied limestone, will be used for testing the distribution centre and the production of the company's first batch of pellets.

Environment-friendly

Vale has played an instrumental role in building a solid industrial infrastructure by positively contributing to the development of the local economy.

In line with this strategy, the company contracted Sohar Industrial Port Company to build a two-kilometre jetty, which upon completion, will be exclusively used and operated by Vale. Three ship-loaders and one ship-unloader have already been delivered.

In addition, the global mining company has signed a long term-agreement with Oman Shipping Company for the provision of four very large iron ore carriers (VLOCs) with a load capacity of 400,000 tonnes.

Adopting innovative environmental protection technologies, the project includes an advanced 100 per cent water recycling system as well as a 3,150-metre wind fence surrounding the complex to control dust emissions.

The company is also innovating the technology used for the production of pellets, making its Sohar plant the first to use great kiln furnace technology in Vale.

This new technology aims at providing consistent quality results and an end product with high compression, low abrasion and perfect roundness.

In May 2010, Vale announced its strategic partnership with the Omani government through one of its investment arms, by selling 30 per cent of its shares in the pelletising plant to Oman Oil Company.

The industrial complex is Vale's first iron-ore greenfield project outside Brazil and will serve as a hub to cater to the growing demand for iron-ore products in the Middle East, North Africa and Asia.

Iron ore and pellets

Vale is one of the world's leading diversified mining companies. 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 as well as nickel which is used to produce stainless steel, batteries, special alloys, chemicals and other products. The company also produces copper, manganese, ferroalloys, bauxite, alumina, aluminum and coal, among other raw materials important to the global industrial sector and present in people's daily lives.

The company broke ground for its industrial complex in Sohar in March 2009 comprising a pelletising plant, bulk terminal and distribution centre with a capacity of 40 million tonnes.

The pelletising plant will have an annual nominal production capacity of 9 million tonnes of direct reduction pellets with the estimated total cost of the project at approximately $1.4 billion.

© Times of Oman 2011