Ores

Brazil’s miner Vale signs agreements in Midde East

Nov, 01, 2022 Posted by Gabriel Malheiros

Week 202244

Brazilian miner Vale said on Tuesday (31) it has signed agreements with local authorities and clients to look at developing industrial complexes, or mega hubs, in Saudi Arabia, the United Arab Emirates and Oman. These complexes will be focused on low-carbon steelmaking products such as hot briquetted iron (HBI) to supply both local and foreign markets.

The company said the production of HBI using natural gas emits around 60% less CO2, when compared to pig iron production through the integrated BF-BOF route. In the future, the replacement of natural gas by hydrogen and the usage of renewable energy could eliminate CO2 emissions.

Vale is expected to build and operate iron ore concentration and briquetting plants within the hubs, while local parties are seen building the required logistics infrastructure. Investors and clients would construct and operate the direct reduction iron plants and be off-takers of HBI for either the export or domestic markets.

“We are very pleased to announce these partnerships, which we believe will be key to support the decarbonization of the steelmaking industry. With this initiative Vale will guarantee the availability of high-grade agglomerated products and foster,” Vale CEO Eduardo Bartolomeo (pictured) was quoted as saying in a statement.

Vale’s head of iron ore Marcello Spinelli said the company believes that the Middle East, with its competitive energy prices, strategic location and entrepreneurial mindset, has a unique set of conditions to successfully develop these integrated hubs. Vale signed memorandums of understanding on the matter in late October with three Arab countries.

The agreements included a memorandum of understanding signed with Saudi Arabia’s National Industrial Development Center (NIDC) for them to study developing a mega hub in Ras Al Khair. Vale has also signed an MoU with the UAE’s Emirates Steel Arkan (ESA) for a plant at the Khalifa Economic Zones Abu Dhabi (KIZAD) and a cooperation memorandum with Oman’s Ministry of Commerce, Industry and Investment Promotion for a hub to be implemented at the Special Economic Zone in Duqm.

Source: Anba

To read the full original article, please go to: https://anba.com.br/en/brazils-miner-vale-signs-agreements-in-midde-east/

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