The Saudi Arabian green steel project will receive iron ore from the world's largest mining company, Vale International, according to a statement released by the Indian company. Essar and Bahrain Steel had already signed a contract for the supply of DR-grade pellets for the project. With the agreement with Vale, Essar has guaranteed a continuous supply of raw materials to the Saudi steel plant.
Vale International, a wholly-owned subsidiary of Vale SA, a major producer of Brazilian iron ore and iron ore agglomerates, has partnered with the worldwide conglomerate Essar Group. According to Vale, Essar Group would receive 4 million tonne of iron ore agglomerates annually from the company.
Vale is a top supplier of premium raw materials to integrated steel makers all over the world, operating from sites in Brazil and Oman. In Ras Al Khair, Saudi Arabia, Essar is considering spending about USD 4.5 billion to build an integrated steel mill.
The project is planned to include a 5 million tonne per year direct reduction iron (DRI) capacity, divided into two 2.5 million tonne per module modules, along with a 4 million tonne per year hot strip capacity. Along with galvanising and tin plate lines, the project also includes a million tonnes of cold rolling capacity.