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Bahrain Steel has signed a letter of intent (LOI) with India-based multinational conglomerate Essar Group to supply of iron ore pellets to the Green Steel Arabia (GSA) project.
Essar said in a press statement that Bahrain Steel will deliver four million tonnes of DR-grade pellets per annum (mtpa) to Essar Group.
Bahrain Steel, a subsidiary of Bahrain-based investment company Foulath Holding, produces and supplies high-quality DR grade pellets to all integrated steel producers in the region.
Dilip George, Group CEO of Foulath Holding, said: " We are proud to collaborate with Essar Group to support their pioneering project for setting up the first green steel project in Saudi Arabia, where there is a growing focus on sustainable development."
Naushad Ansari, Country Head for Essar Group in KSA, said: "Essar is looking at investing about $4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia. This LOI, post final contracts being agreed and signed, will secure 50 percent raw material supply of iron ore pellets for the Saudi steel plant. If all goes as planned, we expect commercial production to begin from the year 2027."
The green steel project will have a direct reduced iron (DRI) capacity of 5.0 mtpa, comprising of two modules of 2.50 mtpa each, and 4.0 mtpa hot strip capacity, as well as 1.0 million tonnes of cold rolling capacity along with galvanising and tin plate lines.
The statement said the project aims to set a global benchmark in the reduction of CO2, and will cater to construction, Oil & Gas, automotive, packaging and general engineering industries.
(Writing by SA Kader; Editing by Anoop Menon)
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