13.8 C
Belgrade
Supported byspot_img
spot_img

Vale to supply iron ore for Essar’s green steel project in Saudi Arabia

Member of Europium Groupspot_img
Supported byspot_img

Vale, a wholly owned subsidiary of global mining company Vale SA, will supply Essar with 4 million tonnes per annum (mtpa) of iron ore agglomerates (DR grade pellets and briquettes). Vale has facilities in Brazil and Oman and it is one of the leading providers of raw materials to integrated steel producers worldwide.

“Essar is looking at investing about $4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia,” said Naushad Ansari, country head for Essar group in KSA (Kingdom of Saudi Arabia).

“Through this LoI with Vale, and the previous LoI with Bahrain Steel, we will have secured 100 per cent of the raw material supply of iron ore feed for the Saudi steel plant. Our plan is to start production in the year 2027, and [we] are confident of replacing the flat steel imports into Saudi Arabia and the GCC region with our bouquet of products,” he said.

Supported by

“Vale International’s LoI with Essar for the annual supply of 4 million tonnes of high-grade iron ore agglomerated products signifies our long term commitment to meet the growing demand for raw material by the steel industry, especially in the Middle East,” said Andre Figueiredo, Vale’s regional director.

“Vale’s portfolio of high grade iron ore agglomerates will have a direct positive impact in terms of added value, price competitively and potential lower carbon footprint, thus fostering the expansion of the low CO2 emission steel industry,” he said.

The Essar group, in August, signed an agreement with Foulath’s subsidiary, Bahrain Steel, to source 4 million tonne of DR-grade pellets per annum. The deal was aimed at securing 50 per cent raw material supply of iron ore pellets for the Saudi steel plant.

The Essar project aims to be the first green steel initiative in the region. It will consist of a direct reduced iron (DRI) capacity of 5 mtpa, comprising two modules of 2.5 mtpa each. The project will include a hot strip capacity of 4 mtpa, along with 1 mtpa of cold rolling capacity, as well as galvanizing and tin plate lines.

 

Source: business standard

Supported byElevatePR Digital

Related News

OCSiAl expands SWCNT dispersion facility in Serbia to boost battery innovation

OCSiAl has completed construction of a state-of-the-art facility in Serbia dedicated to producing single wall carbon nanotube (SWCNT) dispersions. This facility, set to commence...

Europe’s position in the expanding battery market

The automotive industry is at a crossroads, necessitating transformation. Europe's focus on establishing expertise and capacity in battery cell production is crucial, supported by...

Ensuring responsible mineral supply chains in the renewable energy transition

The shift towards renewable energy is heavily reliant on minerals like copper, cobalt, bauxite and lithium for technologies such as batteries, electric vehicles, and...

InoBat begins battery production in Slovakia, plans 20 GWh gigafactory with Gotion High-Tech

InoBat has embarked on significant expansions in Slovakia's battery cell production sector. They have initiated production at a pilot line located in Voderady, Slovakia,...
Supported by
Supported by
Supported by
error: Content is protected !!