Brazilian mining giant Vale has revealed its plans to commence the construction of “mega hubs” in Middle Eastern nations next year, aiming to produce low-carbon iron ore products tailored for the steel industry. The first of these hubs is anticipated to become operational by 2027.
Last year, Vale had initially unveiled its intentions to establish these plants in Saudi Arabia, the United Arab Emirates, and Oman. The products manufactured at these hubs will encompass hot iron ore briquettes, serving both domestic and international markets.
In a recent presentation, the company highlighted that it has been entering into agreements with customers who are actively seeking solutions to reduce greenhouse gas emissions within the steel sector. Vale believes that increasing the production of iron ore briquettes could be a crucial step in addressing this challenge.
While specific financial details regarding the investment in these “mega hubs” were not disclosed, Vale did not specify which of the proposed locations would be developed first.
Vale’s role will involve constructing and operating iron ore concentration and briquetting plants within these hubs. Simultaneously, its local partners will be responsible for building the necessary logistics infrastructure, as outlined by the company.
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