Vale ( NYSE: VALE ) and Saudi Arabia's National Industrial Development Center signed a memorandum of understanding to study the development of a 4M metric tons/year iron ore pellet plant in Ras Al-Khair, S&P Global Platts reported Tuesday.
The plant producing pellets, which are able to be used in natural gas and hydrogen-based iron and steel plants, would be only the second such facility on the Arabian Peninsula, according to S&P Global Platts.
"Iron ore pellets, the main feedstock for steelmaking, have been identified by NIDC as a critical component necessary to ensure an uninterrupted supply of raw materials to the local industry," the Saudi group said.
Vale ( VALE ) also has signed an MoU with the UAE's Emirates Steel Arkan for a plant at the Khalifa Economic Zones Abu Dhabi and a cooperation memorandum with Oman's Commerce Ministry for a hub to be implemented in Duqm.
"We see a great potential in the direct reduction route, with the seaborne demand for these high-grade agglomerated products growing 100M metric tons in the next 15-20 years," Vale's ( VALE ) head of iron ore Marcello Spinelli said, according to Reuters.
Vale ( VALE ) is "a diverse metal producer that will generate slow and steady profits over the next four years," Quant Labs Research writes in an analysis published recently on Seeking Alpha .
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Vale signs MoU for Saudi iron ore pellet plant; plan for Middle East mega-hubs