The company signed an agreement with OQ Alternative Energy to supply power to the factory in Sohar

Brazilian mining company Vale has signed an agreement (HOA) with OQ Alternative Energy as part of its strategy to decarbonize its operations in Oman and transition to industrial energy use from renewable sources. This is reported by Zawya.

The agreement establishes a framework for the development of renewable energy solutions to power Vale’s concentrator in the port of Sohar, as well as support the energy needs of the future Green Metallic Mega Hub in Dukm.

As noted, the document outlines the direction of the project’s future development. It establishes clear areas of cooperation related to energy supply, land coordination, and long-term planning to ensure the integration of renewable energy into Vale’s operations.

“Our cooperation with Vale reflects OQAE’s commitment to ensuring the industrial sector’s transition to clean energy. This agreement goes beyond the decarbonization of a single facility – it lays the foundation for a new model of sustainable industrial development in Oman powered by renewable energy sources,” said Najla Zuhair Al Jamali, CEO of OQ Alternative Energy.

Last October, Vale and Chinese steelmaker Jinnan Iron & Steel Group announced a joint investment of $627 million in a concentrator in the port of Sohar. The plant is expected to start operating in 2027. It will process 18 million tons of low-grade iron ore annually, producing 12.6 million tons of high-quality concentrate per year.