📋 Tender Overview
Scope of Work:
To Establish Iron ore concentration plant in SOHAR Port and Freezone.
Description:
With an initial investment exceeding $600mn, the state-of-the-art facility is expected to support the development of Oman’s iron and steel industry, positioning the country as a key player in the global supply chain for Direct Reduction (DR) grade iron ore. The Concentration Plant, scheduled to commence operations by mid-2027, will process 18mn tonnes of iron ore annually, producing 12.6mn tonnes of high-grade concentrate. Vale will invest $227mn to connect the plant to its agglomerate facilities in the region, while Jinnan will invest approximately $400mn to build, own, and operate the plant.
At the heart of this collaboration is a commitment to innovation; iron ore shipped from Brazil will be upgraded into a higher-grade concentrate to produce high-quality agglomerates with reduced environmental impact. With its strategic location, the new plant will therefore strengthen the sultanate’s role as a key supplier to regional and international steel markets. This facility will enhance ability to meet the increasing global demand for high-grade iron ore, while also advancing our sustainability goals.
The concentration plant is expected to create economic benefits beyond the steel industry. By generating direct and indirect employment, driving technological advancement, and increasing export capacity, the plant will boost Oman’s export capabilities and further integrate the sultanate into global steel trade routes, supporting efforts to diversify the industrial base. With an emphasis on sustainability, the facility will utilise advanced technologies to minimise its environmental footprint, ensuring efficient resource use, in line with Oman’s commitment to responsible and sustainable industrial growth.
