Always seeking new opportunities and innovative solutions, Vale established its first Middle East commercial office in Muscat in 2007 aiming to build a state-of-the-art pelletizing plant and distribution center in Sohar. The project is planned to act as a central distribution hub to the Middle East, North Africa and the Indian Sub-Continent and is set to take off at the beginning of 2011. The Plant will have an initial production capacity of 9,000 metric tons with plans of increasing production in years to come.

Given that demand for iron ore has been constantly increasing in the Middle East, North Africa and India (MENAI) Region, Vale decided to bring its operations closer to the region to keep production and supply costs low to benefit all stakeholders.   As a result of market-wide research, Vale selected the Sultanate of Oman to establish its Distribution Hub, given the Country’s strategic location and first class industrial infrastructure more specifically, the world-class Port of Sohar Industrial Complex which stands out due to its unique location outside the Arabian Gulf and has the advantage of deep water seas that can accommodate Vale’s ultra large vessels with 400,000 ton loading capacity. This will therefore allow the transportation of large quantities of iron ore from Brazil to Oman to be processed and in turn distributed to the MENIA region.