By The Rio Times | Created at 2025-01-16 18:59:25 | Updated at 2025-01-16 22:01:02
3 hours ago
On January 16, 2025, Vale, a Brazilian mining leader, signed a pivotal land reservation agreement with the Royal Commission for Jubail and Yanbu in Saudi Arabia.
This agreement allows Vale to establish a Mega Hub in Ras Al-Khair Industrial City. The project aims to produce up to 12 million tons of cold-briquetted iron ore annually, significantly reducing carbon emissions in steel production.
This Mega Hub will develop in two phases. Vale’s Executive Vice President, Rogério Nogueira, stated that this initiative represents a critical step in reshaping the steel industry in the Middle East.
The facility will integrate advanced technologies with sustainable practices, promoting both economic growth and environmental responsibility. Ras Al-Khair‘s strategic advantages include abundant energy resources and a favorable geographical location.
The hub will serve local and international markets, aligning with Saudi Arabia’s Vision 2030 initiative to diversify its economy beyond oil. Vale’s broader strategy includes developing integrated steelmaking ecosystems across key markets.
Vale and Saudi Arabia Forge Key Partnership for Green Steel Production. (Photo Internet reproduction)Alongside similar projects planned for Oman and the UAE, this hub will enhance collaboration among steel producers and other industrial players. The project also supports Vale‘s commitment to sustainability.
Saudi Arabia and Brazil Partnership
The company aims to reduce its net scope 3 emissions by 15% by 2035. Establishing these hubs will play a significant role in achieving this goal while fostering the production of low-carbon steel.
Saudi Arabia’s mining sector is experiencing rapid growth, driven by efforts to attract foreign investment and develop its mineral resources. The Kingdom’s mineral wealth is valued at approximately $2.4 trillion, highlighting its potential as a global mining player.
This partnership signifies a crucial development in the collaboration between Brazil and Saudi Arabia. As the project progresses, it promises to impact regional steel markets.
It will also contribute to global sustainability efforts in the steel industry. Understanding this partnership offers valuable insights into market trends that could affect investors and policymakers alike.
