Oman Vale has a vision that extends beyond iron pellets
Brazilian mining giant Vale has said it plans to spend up to $700 million to double its production of iron pellets in Oman. Oman Vale, a subsidiary of Vale and in which state-run Oman Oil Company owns a 30 per cent stake, started production recently. It aims to produce some 9 million tonnes of iron pellets each year. 'We are going to spend between $600 million and $700 million to double our production by September 2011 if the government is committed to supplying us gas,' Oman Vale’s country manager Sergio Marcio De Freitas Leite said. Commitment on gas Oman, which produces 1.3 trillion cu ft of gas per year, had said earlier it was committed to supplying natural gas to local projects to diversify away from The country depends heavily on income from crude production of 860,000 barrels per day of oil, which makes up about 70 per cent of its revenues. Leite said his company was hoping to further expand its activities in the sultanate, which has been relatively slow to exploit its sizeable mineral resources. 'We are having talks to have a joint venture with the Omani government to mine for nickel and copper in the country. We are keen to take part in gas exploration as well,' Leite said. Significantly, Vale’s strategic vision for growth in Oman and the wider region is not limited to iron ore and minerals, Vale CEO Roger Agnelli said. The official added that the company was in discussions with Oman Oil for possible partnerships in the development of natural gas, notably in Mozambique in Africa.
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