Vale's Eduardo Bartolomeo and Captain Mohamed Juma Al Shamisi of AD Ports Group. Image Credit: WAM

Abu Dhabi: AD Ports Group and Vale, a Brazil-based producer of iron ore and nickel and a logistics operator, signed a Memorandum of Understanding (MoU) to develop a mega hub in Abu Dhabi for industrial complexes that produce low-carbon products for the steelmaking industry for both the local and seaborne markets, with a significant reduction of CO2 emissions.

The agreement, signed on Wednesday, will see an allocation of land and related services from KEZAD for the hub, in addition to the development and management of a state-of-the-art handling facility at Khalifa Port, capable of accommodating Valemax vessels with a handling capacity of up to 50 million tonnes of cargo per annum.

Furthermore, AD Ports Group will develop and manage conveyor infrastructure to transport iron ore and finished products to and from Khalifa Port and KEZAD and will be exploring commercial collaboration with Vale on the marketing and sale of various bi-products of the manufacturing process in the UAE and the wider region.

The agreement also includes a maritime collaboration to explore opportunities related to the management and operation of very large ore carriers (VLOCs) and other possible avenues of partnership.

Captain Mohamed Juma Al Shamisi, Managing Director and CEO of AD Ports Group, said: “The UAE is committed to not only finding ways to reduce carbon emissions but also to support all efforts to positively affect the global environment. This signing with Vale represents our commitment to the sustainable objectives as set out by the visionary leadership of the UAE.”

Eduardo Bartolomeo, the CEO of Vale, said: “We are encouraged by this opportunity to build a mega hub in the UAE, a country which is strategically positioned to positively influence our drive to significantly reduce CO2 emissions around the globe. Our ability to leverage this new concept of using low-carbon technology in the production of hot briquetted iron (HBI) signals the success of our products globally.”

The Mega Hub initiative contributes to Vale’s commitment to reduce 15 percent of net Scope 3 emissions by 2035. Additionally, Vale seeks to reduce its absolute Scope 1 and 2 emissions by 33 percent by 2030 and achieve net zero by 2050, in line with the Paris Agreement, leading the evolution process towards sustainable mining.

By leveraging their collective strengths, AD Ports Group and Vale are seeking to enhance the overall efficiency of the global supply chain.