Vale International to supply iron ore to Essar’s project

New Delhi: Global mining giant Vale International will supply iron ore to Essar Group’s green steel project in Saudi Arabia, the Indian firm said in a statement on Thursday.

Essar had previously inked a pact with Bahrain Steel for supply of DR-grade pellets for the project. With signing of the pact with Vale, Essar has secured 100 per cent raw material supply for Saudi steel plant, the company said in a statement. “Vale International, a wholly-owned subsidiary of Vale SA, a global mining company and a leading producer of Brazilian iron ore and iron ore agglomerates, has entered into a partnership with the multinational conglomerate Essar Group,” it said. Vale, it said, will supply Essar Group with 4 million tonne per annum of iron ore agglomerates (DR grade pellets and briquettes).

Operating from facilities in Brazil and Oman, Vale is a leading provider of high-quality raw materials to integrated steel producers worldwide. Essar is looking at investing about $4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia. The project is designed with a direct reduced iron (DRI) capacity of 5 million tonne per annum, comprising two modules of 2.5 million tonne each accompanied by a hot strip capacity of 4 million tonne per annum. Additionally, the project includes 1 million tonne of cold rolling capacity alongside galvanizing and tin plate lines.

Commenting on the occasion, Vale’s regional director Andre Figueiredo said: “Vale International’s LoI with Essar for the annual supply of 4 million tonne of high-grade iron ore agglomerated products signifies our long-term commitment to meet the growing demand for raw material by the steel industry; especially in the Middle East.”