Gulf Industrial Investment Company (GIIC) – the Middle East’s only iron ore pelletising plant – recently inked a $200 million contract with Malaysian steel giant Perwaja Steel (part of Majo Holdings), for the supply of two million tonnes of pellets over the next five years starting from this month (January 2006).

The deal was inked recently in Malaysia, between Majo Holdings’ group managing director Dato’ Abu Talib Mohamed, and GIIC chief executive officer Eugenio N Mamede taking the relationship between the two companies to a new level.
“The first pellet shipment to Perwaja was made in May 1993 on and since then GIIC has supplied around 2.4 million tonnes of pellets thereby forging a strategic partnership,” says a GIIC spokesman.
Jointly owned by Gulf Investment Corporation (GIC) and Itala Itabira Rio Doce Company Limited, a wholly-owned subsidiary of Brazil’s Companhia Vale do Rio Doce (CVRD), GIIC operates an iron ore pelletising plant with an annual production capacity of four million tonnes of pellets for use in direct reduction (DR) and blast furnace (BF) plants.
“Due to its concept of importing iron ore and exporting pellets, GIIC is unique in the world and can be considered to be the only “merchant” plant as it is neither part of an iron ore mining nor a steel producing industry,” says the spokesman.
He adds: “Depending on the types of processed ore, the plant can produce “tailor-made” pellets to meet individual customer requirements and specifications. Coated pellets can also be produced upon request.
“The company produces DR Pellets suitable for both Midrex and HyL processes, in addition to Corex and BF. The pellet sales are mainly to Saudi Arabia, Qatar, Iran, India, Indonesia, Malaysia, North Africa and other Asian countries.”
As part of its modernisation plans, GIIC has recently re-routed the gas pipeline running between Arabian Ship Repair Yard (Asry) and the pelletising plant.
“The 3.7 km re-routing of this pipeline was necessitated to enable Asry to expand its operations by dredging a water channel to build, another shipping dock where the present GIIC gas pipeline was running through,” says a spokesman.
He adds: “The $1.4 million turnkey contract awarded to Ahmed Mansoor Al-A’ali involved the laying of a 3.7-km-long gas pipeline that would be executed in two phases and extend from Asry to the Gas Receiving Facility of GIIC.
“During phase I, 700 m of the gas pipeline was laid from the Gas Receiving Facility and connected to the unused existing line. This line was to serve as a backup gas supply line for the GIIC to tide over any eventuality such as a break down or planned maintenance of the main gas line in future.
“During phase II of the project 3,000 m of pipeline was laid from this first point to Asry valve chamber along the GIIC causeway, Bapco service road and Asry highway.
All necessary isolating valves and fittings were installed to facilitate operations in the future.
“All the mandatory tests applicable to the gas pipeline were successfully carried out in accordance with international standards. The pipeline was commissioned in mid-July 2005 and the redundant pipe between GIIC and Asry was removed.”
“The whole project was planned and executed without any interruption to GIIC plant operations,” the spokesman concludes.