ABU DHABI- Emirates Steel, the leading integrated steel plant in the Middle East, has sealed a Memorandum of Understanding (MoU) with Mauritania’s Société Nationale Industrielle Et Minière (SNIM) to look into the feasibility of creating a joint venture company to produce iron oxide pellets.
Under the 18-month agreement, signed by Saeed Ghumran Al Remeithi, Group CEO of Arkan and CEO of Emirates Steel, and Mohamed Vall Ould Telmidy, CEO of SNIM, the companies will study joint plans to produce iron oxide pellets, the primary feedstock required for Direct Reduction steel plants.
Al Remeithi said, "The collaboration with SNIM is aligned with the goals of the UAE’s Industrial Strategy to enhance self-sufficiency. Increasing the production of quality metals and materials will support national industries and foster a vibrant export hub that will further strengthen our presence in the 50 countries around the world that import Emirate Steel products. By investing in the production of this essential raw material, we are also securing a steady supply of feedstock that will shield us against global raw material market volatility and fuel our ambitious growth plans to expand our product range to include flat steel."
Mohamed Telmidy commented, "The groundbreaking MoU with Emirates Steel will help pave the way for significant investments that will be mutually beneficial and which will support the overall industry and local communities in the UAE and Mauritania. Iron pelletising projects in the Middle East and North Africa will accelerate the development of the regional steel industry and enhance its competitiveness regionally and globally. At 1.5 billion tonnes, Mauritania has the largest iron reserves in the Arab world and Africa and we are very keen to establish strategic partnerships that allow us to take advantage of our mineral wealth in the most optimal manner."