Vale Oman Pelletizing Company Becomes 100pc Foreign-capital Company
Muscat, 14 Feb (ONA) --- Vale SA has announced that it has acquired 30 percent of Vale Oman Pelletizing Company (Vale in Oman) from OQ, Oman's global integrated energy company. This is in line with OQ's efforts to attract foreign investments and enter partnerships that maximize the utilization of Omani natural resources.
The ownership transfer is expected to conclude in Q2 of 2023 with the full support of both parties as Vale in Oman continues to make meaningful investments and expand its business in Oman and the region. On conclusion of the transfer, Vale in Oman will be 100 percent owned by Vale SA.
Vale in Oman was established in 2007 with a 70-30 partnership between Vale SA and OQ. The company owns a sophisticated iron ore pelletizing plant with a production capacity of over 9 million ton, in addition to a distribution center with a capacity of 40 million tons.
Vale is experiencing growth in the region with the introduction of a briquetting plant in Sohar, Oman, to be approved by Vale’s Board in the middle of 2023, which will significantly contribute towards employment opportunities in Oman and enhance cross-border trade.
Guilherme Reinisch Neves, Chairman of Vale in Oman, said: “OQ has been an invaluable partner in Oman guiding Vale through several successful business decisions and investments in the region. Our company is incredibly grateful for our long-lasting cooperation. In line with our strategic objectives to be a leader in sustainable mining and a talent-driven organization, Vale in Oman continues to bolster its expansion in Oman and the region in line with global net zero objectives, while investing in local human capital and in-country value initiatives.”
Talal Hamed Al Awfi, CEO of OQ Group, said: “Selling OQ’s stake in Vale in Oman is in line with OQ’s Shareholder, Oman Investment Authority objective is to attract and increase foreign direct investments. We are proud to have been part of Vale’s success in the Sultanate of Oman and look forward to witnessing the company’s growth in the coming years.”
He added, that the deal reemphasizes Oman’s position as an attractive destination for foreign investors.
As an active corporate citizen in Oman, Vale supports in-country value (ICV) initiatives, including local supply chain development and CSR projects, with investments topping $1.4 billion to date. Aligned with the global sustainability policy of the company, Vale in Oman continues to build a positive legacy in the country.