Vale to approve investment in green megahub in Oman in 2026

This year, a final investment decision is expected on a green steel production complex that Brazilian mining conglomerate Vale plans to build in a special economic zone in Ducmi, Zawya reports.

The $5 billion mega-hub project will focus on producing a more environmentally friendly version of Vale’s iron ore pellets and hot briquetted iron (HBI), which will serve as raw materials for steel mills across the Middle East. Construction is expected to be completed by 2029, with the first phase already implemented in 2026.

According to Nasser Al Azri, CEO of Vale Oman Pelletising Company, the project is already in the early stages of development and has attracted significant interest from international investors.

«We are promoting our mega hub strategy, under which Vale not only invests directly but also facilitates our clients’ investments in lower market segments. Several memoranda of understanding have already been signed, clients have met with the government in Oman, and we expect agreements to be signed by the end of this year,» he said.

The investment in Oman, first announced in November 2022, is one of three mega hubs planned by Vale in the Middle East. The company intends to develop and operate iron ore enrichment and briquetting facilities to ensure a stable supply of high-quality products. At the same time, local partners will lead the development of supporting logistics infrastructure, while investors and customers will lead the construction and operation of direct reduction plants and purchase the resulting HBI for the domestic market and export.

It should be recalled that in January last year, Vale and Saudi Arabia signed an agreement on a green mega-hub. The project has the potential to produce up to 12 million tons of direct reduced iron (CBI) per year.