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Vale announces commissioning phase of its industrial complex in Oman


Vale announces that it is currently in the commissioning phase of its first pelletizing plant within its Industrial Complex in Oman that also includes a distribution center and a deep-water bulk jetty.

The complex is comprised of two plants, each with nominal production capacity of 4.5 million metric tons per year of direct reduction pellets, thus adding 9 million metric tons per year to our production capacity, and a distribution center with capacity to handle 40 million metric ton per year. Together, the plant and the distribution center are estimated at US$ 1.356 billion. The initial production of the first pelletizing plant is forecasted for March 2011 and the first shipment of pellets is scheduled to be released in May 2011.

The jetty is being built by Sohar Industrial Port Company and will be exclusively used and operated by Vale. In line with this strategy, the company has also signed a long term agreement with Oman Shipping Company for the provision of four very large iron ore carriers (VLOCs) with a loading capacity of 400,000 tons to be dedicated to Vale.

Since the commencement of the commissioning phase, Vale has received 220,000 tons of pellet feed and 60,000 tons of Anthracite which together, with the locally-supplied Limestone, will be used for the testing of the distribution center as well as for the production of the company’s first batch of pellets.

Gearing up towards the completion of the off shore jetty, Vale already received three ship-loaders and one ship-unloader.

Adopting innovative environmental preservation technologies, the project encompasses an avant-garde 100% water recycling system as well as a wind fence surrounding the complex to control dust emissions. The company is also innovating the technology used for the production of pellets. This will be Vale’s first plant to use the Grate Kiln furnace technology, aiming to provide consistent quality results and an end product with high compression, low abrasion and perfect roundness.

In May 2010, Vale had announced its strategic partnership with the Omani government through one of its investment arms, by selling a minority stake of 30% in the Pelletizing Plant. The Industrial Complex will add flexibility to our operations, serving as a hub to cater to the growing demand for iron-ore products in the Middle East, Asia and North Africa.


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