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Vale (NYSE:VALE) and Saudi Arabia’s National Industrial Development Center signed a memorandum of understanding to study the development of a 4M metric tons/year iron ore pellet plant in Ras Al-Khair, S&P Global Platts reported Tuesday.
The plant producing pellets, which are able to be used in natural gas and hydrogen-based iron and steel plants, would be only the second such facility on the Arabian Peninsula, according to S&P Global Platts.
“Iron ore pellets, the main feedstock for steelmaking, have been identified by NIDC as a critical component necessary to ensure an uninterrupted supply of raw materials to the local industry,” the Saudi group said.
Vale (VALE) also has signed an MoU with the UAE’s Emirates Steel Arkan for a plant at the Khalifa Economic Zones Abu Dhabi and a cooperation memorandum with Oman’s Commerce Ministry for a hub to be implemented in Duqm.
“We see a great potential in the direct reduction route, with the seaborne demand for these high-grade agglomerated products growing 100M metric tons in the next 15-20 years,” Vale’s (VALE) head of iron ore Marcello Spinelli said, according to Reuters.
Vale (VALE) is “a diverse metal producer that will generate slow and steady profits over the next four years,” Quant Labs Research writes in an analysis published recently on Seeking Alpha.
