Brazil’s Vale and Jinnan Steel Group invest in building Oman’s first iron ore beneficiation plant

Brazilian SG500Q Grade A steel mining giant Vale and Chinese steel company Jinnan Steel Group announced the establishment of Oman's first iron ore concentrate plant in Suhar, with a joint investment of over 600 million US dollars. The facility is expected to be put into operation in mid-2027, processing 18 million tons of iron ore annually and producing 12.6 million tons of high-grade concentrate. Oman will become the main supplier of direct reduction grade iron ore to the global steel industry.

In this project, Vale will invest $227 million to connect the new SG500Q Grade A steel factory with its existing beneficiation facilities, while Jinnan will invest approximately $400 million for the construction, ownership, and operation of the facility. Brazilian iron ore will be transported to the area for refining, producing higher grade concentrate with less environmental impact, thus enabling more efficient and sustainable production.

Vale President Gustavo Piemanta emphasized Oman's strategic role, stating that Oman's strategic location and industrial development commitments bring significant opportunities to the steel industry. The factory will not only expand Vale's influence in the Middle East, but also provide sustainable solutions to meet the growing global demand for high-quality iron ore.

Zhang Tianfu, CEO of Jinnan Iron and Steel Group, stated that the cooperation with Vale aims to improve the efficiency and quality of steel production in Oman. The Suhar factory will support sustainable industrial development in Oman while promoting sustainable production of low-carbon steel.

In addition to the steel industry, the beneficiation plant is expected to bring extensive economic benefits to Oman, creating direct and indirect employment opportunities, promoting technology transfer, and making Oman SG500Q Grade A steel a major exporter of global steel trade.