Vale and ABB reached a 3-year agreement on Iron ore project

September 01,

ABB, the leading power and automation technology group, has announced that its local company in Oman, ABB Oman LLC has signed a 3-year maintenance agreement for Vale’s state-of-the-art Iron ore Pellet plant and distribution center in Oman.

Vale is investing US$1.3 billion in the new direct reduction Iron ore Pelletizing plant and distribution center, located in Sohar Industrial Port in Oman.

For Vale, it will be the first Pelletizing operation outside of Brazil. The initial annual production capacity of the plant will be 9 MT and once completed the site’s distribution center will have a capacity of handling 40 MT.

Scheduled for start-up in late 2010, the facility will cater to the Middle East steel industry’s growing demand for Iron ore and pellets.