Brazilian mining giant Vale is targeting a final investment decision (FID) this year for its planned low-carbon steel complex in the Duqm Special Economic Zone (SEZAD) in Oman. Construction of the multi-billion-dollar project is expected to begin next year.
The project, referred to as the “Mega Hub,” is designed to produce iron ore concentrates and hot briquetted iron (HBI) using more environmentally friendly production methods. The HBI output is intended to serve as a strategic raw material for steel plants across the Middle East.
According to Nasser Al Azri, CEO of Vale Oman Pelletising Company, the project has made significant progress during its early development stages and has attracted strong interest from international investors focused on downstream opportunities. He noted that Vale is pursuing a model that supports not only direct investment but also downstream investments by its customers in the region.
Al Azri added that land allocation in Duqm has been completed, with an initial investment of approximately USD 5 billion planned in partnership with stakeholders. The facilities are targeted for completion by 2029. Under a land lease agreement with the Port of Duqm, a 6.78-square-kilometre area has been allocated to Vale for the project.
Under the Mega Hub framework, Vale plans to operate the iron ore beneficiation and briquetting facilities, while supporting logistics infrastructure will be developed by local partners. The use of natural gas is expected to enable HBI production with around 60% lower carbon emissions compared to conventional steelmaking routes, with a longer-term transition to hydrogen and renewable energy aimed at near-zero emissions.
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