Vale (NYSE: VALE) and China’s Jinnan Iron & Steel Group announced a $627 million joint investment in an iron ore concentration facility in Sohar, Oman, approximately 200 km from Muscat. The plant, slated to begin operations in 2027, will process 18 million tonnes of low-grade ore annually to yield 12.6 million tonnes of high-grade concentrate.
Vale will contribute $227 million to link the plant with its existing pelletizing infrastructure, while Jinnan will invest $400 million to build and manage the facility. Gustavo Pimenta, Vale’s CEO, highlighted that the project combines Brazilian iron ore expertise with Oman’s strategic location to foster further collaboration with China.
The plant will produce premium pellets and future briquettes with reduced environmental impact, marking Jinnan’s first project in Oman and supporting the country’s industrial growth. Known for magnetic separation technology, Jinnan’s role enhances the project’s efficiency. Vale also plans to replicate this model at additional mega hubs across the Middle East, Brazil, and the U.S.
By Monday afternoon, Vale’s stock rose 1.7% to $62.76, bringing the company’s market value to $284.8 billion.
