Brazilian mining giant Vale and China’s Jinnan Steel Group have announced a joint venture to establish Oman’s first iron ore concentration plant in Sohar, with an investment exceeding $600 million. Expected to begin operations by mid-2027, the facility will process 18 million tons of iron ore annually, producing 12.6 million tons of high-grade concentrate, positioning Oman as a key supplier of direct-reduction grade iron ore for the global steel industry.
Investment Breakdown and Sustainability Goals
As part of this project, Vale will invest $227 million to connect the new plant with its existing processing facilities, while Jinnan Steel will contribute around $400 million toward construction, ownership, and operations. Iron ore from Brazil will be refined at the facility, yielding a high-grade concentrate that supports more efficient and environmentally sustainable production.
Economic Impact on Oman
Beyond the steel sector, this plant is projected to bring significant economic benefits to Oman, creating both direct and indirect employment opportunities, promoting technology transfer, and elevating Oman as a major player in global steel exports.
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