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Oman Signs Agreement for Eco-Friendly Steel Production | |
| Sumita Pawar |
Vale S.A. has signed a land reservation agreement with the Port of Duqm Company and a memorandum of understanding with Marafiq to establish an integrated industrial complex to produce low-carbon products for the steelmaking industry in Oman's Special Economic Zone at Duqm.
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The Mega Hub initiative contributes to Vale's commitment to reduce 15% of net Scope 3 emissions by 2035.
Eng. Ahmed Hassan Al Dheeb, Deputy Chairman of the Public Authority for Special Economic Zones and Free Zones, said that the project is expected to produce raw materials for the steel industry. He pointed out that all parties involved in the project take a keen interest in enhancing the use of clean energy and green hydrogen in the facilities that will be established.
On his turn, Eduardo Bartolomeo, Vale’s CEO, said, "The signing of these agreements marks a significant milestone in establishing Vale as a leader in sustainable mining."
He added, "We are thrilled about the prospects the planned Mega Hub presents for supporting the steel industry’s drive towards greener operations. The Port of Duqm, a growing key industrial hub in the Sultanate of Oman, is perfectly positioned to support our expansion plans, and we are excited to demonstrate the potential of Oman and Duqm as an attractive proposition for foreign direct investment."
The development of the Mega Hub project is expected to produce HBI and steel products to supply both the local and export markets while significantly reducing CO2 emissions.
The production of HBI using natural gas emits around 60% less CO2 when compared to more traditional methods.