30 May 2010
MUSCAT: Oman Oil Company (OOC) yesterday signed an agreement to buy 30 per cent stake in Vale Oman Pelletising Company (VOPC), located at Sohar.
Mohammed bin Nasser Al Khusaibi, secretary-general of the Ministry of National Economy and member of the board of directors of OOC, signed the agreement on behalf of the company. Roger Agnelli, chief executive officer of Vale International, represented the Brazilian company.
The signing ceremony was attended by officials of both the companies. The plant is capable of producing nine million tonnes of direct reduction iron ore pellets annually with the option to expand production in future.
The iron ore palletising plant is the first to be set up by Vale outside Brazil. Iron ore pellets will be exported. The raw material, iron ore, will be imported from Vale mines in Brazil. The iron ore pelletising plant is scheduled to start production in late 2010 and full commissioning by mid-2011. Advanced pollution control and safety systems will ensure compliance with Omani and international environment and safety standards.
Oman Shipping Company is constructing four very large ore carrier ships (VLOC), each with a capacity of 400,000. The carrier ships will be used to carry iron ore from Vale's mines in Brazil to Sohar Port as part of a long -term agreement between Vale and Oman Shipping Company.
Commenting on this occasion, Mohammed bin Nasser al Khusaibi said, "This agreement is the latest investment by Oman Oil and the first in the iron ore business in partnership with Vale, the largest iron ore company in the world."
He added that the project will diversify the company's investment portfolio and create more job opportunities and training for the Omani workforce."
On behalf of Vale, the chief executive officer, said: "Oman Oil is a key partner with Vale in this region and this agreement is a perfect example of Vale's global business strategy of forming long-term partnerships with key local players to support the development of large scale green-field projects."
He also hailed the key role of the Sultanate's government in providing a positive business environment and promoting major industrial investments.
Key partner
Agnelli affirmed that the iron ore palletising plant and the distribution centres will play an important role in the Sultanate's efforts to diversify Omani economy and help promote more foreign private sector investment.
He hoped that the agreement between Vale and OOC will also enhance Vale's role in the region's iron and steel market, creating substantial value for Vale's shareholders and for the Omani community
Oman Oil Company is wholly owned by the government of the Sultanate. The company was established in 1996 to give the government another vehicle for pursuing investment opportunities in the energy sector both inside and outside Oman.
OOC has managed, in a relatively short period of time, to contribute to the development of many important projects in energy and energy-related areas. Through this participation, OOC plays a key role in the Sultanate's efforts to diversify the Omani economy and help generate Omani and foreign private sector investment.
Local and international investments' portfolio of OOC include more than 30 projects covering the areas of exploration and production of petroleum, infrastructure, petrochemicals, transport, energy, refining ,marketing and mining,
Vale is the world's second largest diversified mining company by market capitalisation. Present in over 30 countries, Vale is the world's largest producer of iron ore and pellets, key raw materials for the steel industry.
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 2007 . The company is currently building a new industrial complex in the wilayat of Sohar which will comprise a pelletiSing plant, iron ore bulk terminal and distribution centre.
MUSCAT: Oman Oil Company (OOC) yesterday signed an agreement to buy 30 per cent stake in Vale Oman Pelletising Company (VOPC), located at Sohar.
Mohammed bin Nasser Al Khusaibi, secretary-general of the Ministry of National Economy and member of the board of directors of OOC, signed the agreement on behalf of the company. Roger Agnelli, chief executive officer of Vale International, represented the Brazilian company.
The signing ceremony was attended by officials of both the companies. The plant is capable of producing nine million tonnes of direct reduction iron ore pellets annually with the option to expand production in future.
The iron ore palletising plant is the first to be set up by Vale outside Brazil. Iron ore pellets will be exported. The raw material, iron ore, will be imported from Vale mines in Brazil. The iron ore pelletising plant is scheduled to start production in late 2010 and full commissioning by mid-2011. Advanced pollution control and safety systems will ensure compliance with Omani and international environment and safety standards.
Oman Shipping Company is constructing four very large ore carrier ships (VLOC), each with a capacity of 400,000. The carrier ships will be used to carry iron ore from Vale's mines in Brazil to Sohar Port as part of a long -term agreement between Vale and Oman Shipping Company.
Commenting on this occasion, Mohammed bin Nasser al Khusaibi said, "This agreement is the latest investment by Oman Oil and the first in the iron ore business in partnership with Vale, the largest iron ore company in the world."
He added that the project will diversify the company's investment portfolio and create more job opportunities and training for the Omani workforce."
On behalf of Vale, the chief executive officer, said: "Oman Oil is a key partner with Vale in this region and this agreement is a perfect example of Vale's global business strategy of forming long-term partnerships with key local players to support the development of large scale green-field projects."
He also hailed the key role of the Sultanate's government in providing a positive business environment and promoting major industrial investments.
Key partner
Agnelli affirmed that the iron ore palletising plant and the distribution centres will play an important role in the Sultanate's efforts to diversify Omani economy and help promote more foreign private sector investment.
He hoped that the agreement between Vale and OOC will also enhance Vale's role in the region's iron and steel market, creating substantial value for Vale's shareholders and for the Omani community
Oman Oil Company is wholly owned by the government of the Sultanate. The company was established in 1996 to give the government another vehicle for pursuing investment opportunities in the energy sector both inside and outside Oman.
OOC has managed, in a relatively short period of time, to contribute to the development of many important projects in energy and energy-related areas. Through this participation, OOC plays a key role in the Sultanate's efforts to diversify the Omani economy and help generate Omani and foreign private sector investment.
Local and international investments' portfolio of OOC include more than 30 projects covering the areas of exploration and production of petroleum, infrastructure, petrochemicals, transport, energy, refining ,marketing and mining,
Vale is the world's second largest diversified mining company by market capitalisation. Present in over 30 countries, Vale is the world's largest producer of iron ore and pellets, key raw materials for the steel industry.
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 2007 . The company is currently building a new industrial complex in the wilayat of Sohar which will comprise a pelletiSing plant, iron ore bulk terminal and distribution centre.
© Times of Oman 2010
