New iron ore concentrator project in Oman advances

Observer

20 hours ago

MUSCAT, JUNE 17
The development of a greenfield iron ore concentrator plant is gaining momentum at Sohar Port and Freezone, with international companies announcing key contracts for the supply of critical equipment and project management services.
A joint investment of approximately $627 million is being made in the Sohar Concentrator Plant by Brazil-based global mining conglomerate Vale and leading Chinese steelmaker Jinnan Iron & Steel Group. First unveiled last October, the state-of-the-art facility will produce high-quality iron ore concentrate for the manufacture of pellets and briquettes—crucial feedstock for the production of low-carbon steel via the Direct Reduction (DR) route.
The concentrator plant will process 18 million tonnes of low-grade iron ore annually, yielding 12.6 million tonnes of high-grade concentrate. Vale has committed $227 million to connect the new plant to its existing pelletisation facility in Sohar, while Jinnan will invest approximately $400 million to build, own, and operate the plant.
On Tuesday, Finnish industrial machinery manufacturer Metso Corporation announced it had signed an agreement to supply core process equipment for the project. The contract includes the delivery of heavy-duty grinding machinery with a total installed capacity of 25 MW, large slurry pumps, and mill discharge pumps.
Commenting on the agreement, Piia Karhu, President of the Minerals business at Metso, said: 'This project marks Jinnan's first venture in Oman, a country rich in diverse mineral resources and with a strategic vision to develop its mining sector as part of broader economic diversification efforts. As a leading supplier of process technology and services for concentrator plants worldwide, Metso is pleased to partner with Jinnan Iron & Steel Group on this greenfield initiative.'
Earlier, Chinese media reported that MCC Changtian International Engineering Company, a subsidiary of China Metallurgical Group Corporation (MCC Group), had been awarded a general contracting and project management contract by Jinnan Iron & Steel for the Sohar facility. MCC Changtian's scope also includes development of a supporting stockyard, long-distance slurry transport systems, and a dry tailings stacking system.
MCC Changtian is a leading Chinese engineering, procurement, and construction (EPC) company specializing in metallurgical and infrastructure projects.
Once operational by mid-2027, the concentrator is expected to establish Oman as a key global supplier of DR-grade iron ore.
Joint venture partner Vale has indicated it intends to replicate this investment model across its proposed Mega Hubs in other locations, including Saudi Arabia, the United Arab Emirates, Brazil, and the United States. Under this model, Vale will construct and operate ore concentration and briquetting plants, while local partners develop the required logistics infrastructure.
Metso is well-established as a supplier of mineral processing equipment for Oman's industrial and mining sectors. Earlier this year, the Finnish firm signed an agreement with Mazoon Mining, a wholly owned subsidiary of Minerals Development Oman (MDO), to supply key process equipment worth $30 million for its copper concentrator plant located in Yanqul.