Vale is currently in the commissioning phase of its first pelletising plant within its industrial complex in Oman that also includes a deep-water bulk jetty. The complex is comprised of two plants, each with nominal production capacity of 4.5 Mt/y of direct reduction pellets, thus adding 9 Mt/y to its production capacity, and a distribution centre with capacity to handle 40 Mt/y. Together, the plant and the distribution centre are estimated at $1.356 billion. The initial production of the first pelletising plant is forecaste 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 Co 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 Co for the provision of four very large iron ore carriers (VLOCs) with a loading capacity of 400,000 t to be dedicated to Vale.
 
Since the commencement of the commissioning phase, Vale has received 220,000 t of pellet feed and 60,000 t of anthracite which together, with the locally-supplied limestone, will be used for the testing of the distribution centre 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 a 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 pelletising plant. The complex will add flexibility to Vale’s operations, serving as a hub to cater to the growing demand for iron-ore products in the Middle East, Asia and North Africa.