Brazilian mining group Vale has signed a land reservation agreement with Port of Duqm Company as well as a memorandum of understanding (MoU) with Marafiq to establish an integrated industrial complex in the Special Economic Zone at Duqm (Sezad).
The upcoming facility will be producing low-carbon products for the steelmaking industry, it stated.
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 Eduardo Bartolomeo signed the agreement with Port of Duqm’s CEO Reggy Vermeulen and the MoU with Marafiq Managing Director Engineer Abdullah Mohammed Al Hashmi.
"The signing of these agreements marks a significant milestone in establishing Vale as a leader in sustainable mining," stated Bartolomeo.
"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," he added.
Sezad Deputy Chairman Engineer Ahmed Hassan Al Dheeb said the project was expected to produce raw materials for steel industries.
"All parties involved in the project are taking keen interest in enhancing the use of clean energy and green hydrogen in the facilities that will be established," he added.
On the deal, Vermeulen said: "We are pleased that the Mega Hub will be established in the Port of Duqm. 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," he added.-TradeArabia News Service