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

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

08 Sep 2023 2 Min Read CW Team
Global mining giant Vale International has entered into an agreement to supply iron ore to Essar Group's green steel project in Saudi Arabia, according to a statement by the Indian firm. This deal follows Essar's previous agreement with Bahrain Steel for the supply of DR-grade pellets for the same project.

With the partnership with Vale, Essar has now secured a 100 per cent supply of raw materials for its Saudi steel plant, marking a significant milestone for the project.

Vale International, a subsidiary of Vale SA, a leading global mining company known for producing Brazilian iron ore and iron ore agglomerates, will provide Essar Group with an annual supply of 4 million tonnes of iron ore agglomerates, including DR grade pellets and briquettes.

Operating from facilities in Brazil and Oman, Vale is a key provider of high-quality raw materials to integrated steel producers worldwide.

Essar's ambitious investment of approximately USD 4.5 billion aims to establish an integrated steel plant in Ras Al Khair, Saudi Arabia. The project includes a direct reduced iron (DRI) capacity of 5 million tonnes per annum, comprising two 2.5 million-tonne modules, along with a hot strip capacity of 4 million tonnes per annum. Additionally, the project encompasses 1 million tonnes of cold rolling capacity, as well as galvanising and tin plate lines.

Vale's regional director, Andre Figueiredo, expressed the company's commitment to meeting the growing demand for raw materials in the steel industry, especially in the Middle East, and highlighted the potential for lower carbon emissions with Vale's high-grade iron ore agglomerates.

Naushad Ansari, Country Head for Essar Group in Saudi Arabia, emphasised their goal of starting production in 2027 and replacing flat steel imports into Saudi Arabia and the GCC region with their range of products. The Essar project aims to be a pioneering Green Steel initiative in the region, aligning with Saudi Arabia's demand for steel products and its Vision 2030 objectives to reduce carbon emissions.

Global mining giant Vale International has entered into an agreement to supply iron ore to Essar Group's green steel project in Saudi Arabia, according to a statement by the Indian firm. This deal follows Essar's previous agreement with Bahrain Steel for the supply of DR-grade pellets for the same project.With the partnership with Vale, Essar has now secured a 100 per cent supply of raw materials for its Saudi steel plant, marking a significant milestone for the project.Vale International, a subsidiary of Vale SA, a leading global mining company known for producing Brazilian iron ore and iron ore agglomerates, will provide Essar Group with an annual supply of 4 million tonnes of iron ore agglomerates, including DR grade pellets and briquettes.Operating from facilities in Brazil and Oman, Vale is a key provider of high-quality raw materials to integrated steel producers worldwide.Essar's ambitious investment of approximately USD 4.5 billion aims to establish an integrated steel plant in Ras Al Khair, Saudi Arabia. The project includes a direct reduced iron (DRI) capacity of 5 million tonnes per annum, comprising two 2.5 million-tonne modules, along with a hot strip capacity of 4 million tonnes per annum. Additionally, the project encompasses 1 million tonnes of cold rolling capacity, as well as galvanising and tin plate lines.Vale's regional director, Andre Figueiredo, expressed the company's commitment to meeting the growing demand for raw materials in the steel industry, especially in the Middle East, and highlighted the potential for lower carbon emissions with Vale's high-grade iron ore agglomerates.Naushad Ansari, Country Head for Essar Group in Saudi Arabia, emphasised their goal of starting production in 2027 and replacing flat steel imports into Saudi Arabia and the GCC region with their range of products. The Essar project aims to be a pioneering Green Steel initiative in the region, aligning with Saudi Arabia's demand for steel products and its Vision 2030 objectives to reduce carbon emissions.

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