Vale and Saudi Arabia sign agreement on green megahub

Brazilian mining company Vale and the Jubail and Yanbu Royal Commissions have signed an agreement to reserve land for a green steel megahub in the industrial city of Ras Al Khair. This is stated in the message of Vale.

The project will be implemented in two stages. It has the potential to produce up to 12 million tons of direct reduced iron (CBI) per year. This is expected to accelerate the transition to zero-emission steel production.

Rogério Nogueira, Executive Vice President of Commercial and New Business at Vale, said the deal is more than just a milestone for the company.

“It represents our first step towards changing the future of the steel industry in the Middle East. The Khair Mega Hub will serve as a model for integrating advanced technology with sustainable practices, delivering not only environmental impact but also economic benefits,” he said.

The hub will serve local, regional and international markets and will contribute to the realization of Saudi Arabia’s industrial ambitions in line with its Vision 2030 program.

The megahub in Ras Al Khair is part of Vale’s broader strategy to develop integrated steel production ecosystems in key markets. Together with megahubs planned in Oman and the UAE, the facility will act as a regional hub for green steel, providing high-quality iron ore and facilitating cooperation between Vale, steelmakers and other industrial players.

In addition, together, these hubs will contribute to Vale’s goal of reducing emissions. The company has committed to reducing its net emissions by 15% by 2035 under Scope 3. The mining giant also aims to reduce its absolute emissions under Scope 1 and 2 by 33% by 2030 and achieve climate neutrality by 2050.

At the end of last year, Vale announced that it had completed negotiations with the US Department of Energy’s (DOE) Clean Energy Demonstration Office and would begin the first phase of the project to build an industrial-scale briquette plant in Louisiana.