$1.4 billion project and cooperation contract

Country/Region/International Authority: 
Contract Set?: 
Contract Amount: 
1,400,000,000 USD
Project Timeframe: 
10 years
Announcement Date: 

Saudi Basic Industries Corporation (SABIC) signed a cooperation contract with the mining company Vale SA for 10 years. Vale SA will supply DRPs to factory SABIC. Contractual agreements between the two companies, Vale will supply 3.3 million tons of DRPs.
In 2007, Vale set up representative offices in the Middle East to expand cooperation with Middle East companies and set up some factories in the industrial complex at Sohar. Plant will have a nominal annual production capacity of 9 million metric tons of direct reduction pellets. The operation is scheduled to begin in the second half of 2010, with an estimated total project cost at approximately $ 1.4 billion.