Oman Oil Company SAOC (OOC) and Vale S.A. (VALE) are pleased to announce the signing of an agreement on 29th May for OOC’s investment in Vale Oman Pelletizing Company LLC (“VOPC”). The Agreement was signed by H.E. Mohammed bin Nasser Al Khasibi, Secretary General of the Ministry of National Economy, a member of the Board of Directors of OOC, and Mr. Roger Agnelli, Chief Executive Officer of Vale. OOC will acquire a 30% equity interest in VOPC, with Vale holding the remaining 70% shareholding and operating the plant.

The iron ore pelletizing plant is presently under construction at Sohar with the start up scheduled for late 2010 and full commissioning by mid 2011. The plant is capable of producing 9 million tonnes of direct reduction iron ore pellets annually with the option to expand production in future. Advanced pollution control and safety systems will ensure compliance with Omani and international environmental and safety standards.

The pellet plant forms a key element of a large industrial complex including an iron ore distribution centre with the capacity to handle up to 40 million tonnes of iron ore and pellets annually, using raw iron ore imported from Brazil for processing and export to steel makers in regional markets. The complex is Vale’s first green-field iron ore project outside Brazil.

Oman Shipping Company is constructing four very large ore carrier ships (VLOC), each with a capacity of 400 thousand tonnes, to be leased to Vale to carry iron ore from Vale’s mines in Brazil to Sohar.

Commenting on this occasion, H.E. Mohammed bin Nasser Al Khasibi said, “We are pleased to announce OOC’s latest investment in Oman, our company’s first in the iron ore business in partnership with Vale, the largest iron ore company in the world. This project not only diversifies our company’s investment portfolio but supports the future development of the iron and steel making industry and related support and downstream businesses in Oman, which will enhance the increased employment and specialised training of the Omani workforce”.

On behalf of Vale, the Chief Executive officer, Mr. Agnelli said “Oman Oil Company is a key partner with Vale in this region and this agreement is a perfect example of Vale’s global business strategy of forming long term partnerships with key local players to support the development of large scale green-field projects. Vale acknowledges with special thanks the key role of the Government of Oman in creating a positive business environment promoting major industrial investments like this plant and for its strong support for the development of this project over several months. We see the pellet plant and the distribution centre playing an important role in the Sultanate's efforts to diversify the Omani economy and to help promote more foreign private sector investment. Vale believes that the transaction with OOC will also enhance our role in the region’s iron and steel market, creating substantial value for our shareholders and for the Omani community”.

VALE is the world's second largest diversified mining company by market capitalization. Present in over thirty countries, Vale is the world's largest producer of iron ore and pellets, key raw materials for the steel industry, and one of the largest producers of nickel, which is used to produce stainless steel, batteries, special alloys, chemicals and other products. The company also produces copper, manganese, ferroalloys, bauxite, alumina, aluminium and coal, among other raw materials important to the global industrial sector and present in people's daily lives.

Vale set up its Middle East office in Muscat in December 2007 with a view to expanding its presence in this key market. The company broke ground for the new industrial complex in Sohar in 2009 which will comprise a pelletizing plant, iron ore bulk terminal and distribution centre.

 

VALE SA –  http://www.vale.com