Jinnan and Vale invest in direct reduction in Oman

Metso has received a major order from Chinese steel manufacturer Jinnan Iron & Steel for process equipment for an iron ore concentration plant in Oman.

Finnish industrial company Metso has signed an agreement to supply key process equipment for Jinnan Iron & Steel Group’s greenfield iron ore concentrator plant. The facility will be constructed in Sohar, a port city about 200 km north of Oman’s capital Muscat. The plant aims to produce 12.6 million tonnes of high-grade iron ore concentrate annually. It is set to begin operations in 2027 and aims to position Oman as a key supplier in the global Direct Reduction (DR) grade iron ore market. 
Metso’s delivery for the grinding circuit consists of several Vertimil VTM-4500 mills and ball mills with metallic mill liners and a total installed power of approximately 25MW. For the beneficiation circuit, Metso will deliver five HRT High Rate Thickeners equipped with ReactorwellTM feed technology, and six Larox FFP3512 filters for concentrate dewatering. Additionally, Metso will deliver a large slurry pump package covering the whole process and including Metso MD series mill discharge pumps. A significant number of the products covered by the agreement are part of the Metso Plus offering. The value of the order, which is not disclosed, is booked in the Minerals segment’s second-quarter 2025 orders received.
“This project marks Jinnan's first venture in Oman, a country rich in a variety of mineral resources and with a strategic vision to develop its mining sector as part of its economic diversification efforts. As a leading supplier of process technology and services for minerals concentrator plants around the world, Metso is pleased to work as a strategic partner with Jinnan Iron & Steel Group in this greenfield project,” says Piia Karhu, President, Minerals at Metso.

Mega hubs for DRI

Last year, Brazilian mining company Vale and Chinese steel company Jinnan announced a partnership to build an iron ore concentration plant in the port and free trade zone of Sohar in Oman. With an initial investment of over $600 million, the plant will supply high-quality iron ore for the production of pellets and briquettes in the region and strengthen Oman's role as an important supplier to regional and international steel markets.
According to Vale, the company intends to replicate this investment model for the Mega Hubs. In these industrial hubs, Vale is expected to build and operate concentration and briquetting plants; local parties are expected to promote the construction of the required logistics infrastructure; and investors and/or clients to construct and operate the direct reduction plants and be off takers of HBI. Vale has announced three Mega Hubs in the Middle East (Oman, Saudi Arabia and United Arab Emirates) and has signed agreements to develop the same model in Brazil and the USA.
Source: Metso, Vale