Abu Dhabi: Emirates Steel has signed a four-year contract with Brazil’s Vale to supply iron ore pellets for its steel production plant in Abu Dhabi.
Vale is one of the largest iron ore producers in the world with a production of 366 million tonnes of iron ore per year with iron ore mines in Brazil and Iron ore pellet plants in Brazil as well as in Oman.
“The agreement with Vale comes in line with Emirates Steel strategy, which aims to secure flexible source of iron ore at competitive, stable and long term prices,” said Saeed Ghumran Al Remeithi, CEO of Emirates Steel in a statement on Sunday.
“This new partnership plays a vital role to further strengthening the growth of our steel production in Abu Dhabi, as well as realising our vision of being a world class steel manufacturer providing the highest quality products, services and solutions to our customers and maximising returns to our shareholders,” he added.
Emirates Steel, owned by Senaat has an iron ore pellet requirement of around 6 million tonnes per year and the current contract with Vale is expected to strengthen the partnership between the two firms.
Emirates Steel, set up in 1998 is the only integrated steel plant in the UAE, utilising the latest rolling mill technology to produce rebar, wire rod and heavy sections. In 2012, it began producing at a capacity of 3.5 million MTPA (metric tonnes per annum), following two expansions and the investment of around Dh11 billion.