Brazilian mining group Vale has signed a land reservation agreement with the Port of Duqm Company and a memorandum of understanding (MoU) with Marafiq in order to establish an integrated industrial complex in the Special Economic Zone at Duqm (Sezad).
The company said in a statement that the upcoming facility will be producing low-carbon products for the steelmaking industry.
The land reservation agreement commissions joint studies to build a Mega Hub in Oman, while the MoU is aimed at providing the project with access to all the utilities and services required for its operations while promoting the use of clean energy and green hydrogen at the port of Duqm.
Vale CEO Mr. Eduardo Bartolomeo stated that the signing of these agreements marks a significant milestone in establishing Vale as a leader in sustainable mining.
“We are thrilled about the prospects the planned Mega Hub presents in supporting the steel industry’s drive towards greener operations. The Port of Duqm, a growing key industrial hub in Oman, is perfectly positioned to support our expansion plans, and we are excited to demonstrate the potential of Oman and Duqm as an attractive proposition for foreign direct investment,” Mr. Bartolomeo added.
“The strategic location of our port on key international trade routes, its proximity to large regional markets including India, Africa, and GCC countries, and its world-class infrastructure make it an ideal location to establish such major industrial projects. The Port of Duqm is also set to be a future hub for green hydrogen and its derivatives. We are optimistic that it will quickly emerge as a destination of choice for green steel manufacturing and are proud to call ourselves the ‘green port’. We are committed to supporting the national goals of the Sultanate of Oman, including de-carbonization, commitment to net-zero, and realizing the sustainable development goals laid out in Oman Vision 2040.”
The Mega Hub initiative contributes to Vale’s commitment to reduce 15 percent of net Scope 3 emissions by 2035.
Marafiq’s Managing Director Eng. Abdullah bin Mohammed al Hashimi noted that Marafiq is keen to sign this MoU with Vale and provide the project with vital utilities services, including power.
Al Hashimi also highlighted the importance of Vale’s Mega Hub plans in the Special Economic Zone at Duqm and said that “the company will fully support the project which in turn promotes Marafiq’s growth.”