SÃO PAULO (Reuters) – Vale () said on Thursday that it signed an agreement with the Jubail and Yanbu Royal Commission to reserve land for the installation of a “mega hub” in the industrial city of Ras Al-Khair, in Saudi Arabia.
According to the mining company, the project should be developed in two phases and has the potential to produce up to 12 million tons per year of iron ore briquettes, a product developed by Vale that emits less CO2 in its production than pellets.
According to Vale, the megahub in Ras Al-Khair is part of a strategy to develop integrated steelmaking ecosystems in the main markets.
The mining company, which already has similar projects in Oman and the United Arab Emirates, said the Saudi facility will act as a “regional green steel facilitator, providing high-quality iron ore and promoting collaboration between Vale, steel producers and others industrial players”.
“This agreement is more than a milestone for Vale: it represents our first step towards reshaping the future of the steel industry in the Middle East,” said Rogério Nogueira, executive vice-president of Commercial and New Business at Vale, in a statement.
