VALE AND ROYAL COMMISSION OF JUBAIL AND YANBU SIGN LAND RESERVATION AGREEMENT FOR MEGA HUB AT RAS AL-KHAIR

RIYADH, Saudi Arabia, Jan. 16, 2025 /PRNewswire/ -- Marking a strategic milestone in its journey towards green-steel production, Vale, a global leader in sustainable mining, signed a land reservation agreement with the Royal Commission of Jubail and Yanbu, Saudi Arabia, for the establishment of a Mega Hub at Ras Al-Khair Industrial City. Set to be developed in two phases, the project has the potential to produce up to 12 million tons of cold-briquetted iron ore (CBI) annually, offering a ground-breaking solution that will accelerate the transition to net-zero steelmaking.

Rogério Nogueira, Executive Vice President of Commercial and New Business at Vale, said, "This agreement is more than a milestone for Vale; it represents our first step towards reshaping the future of the steel industry in the Middle East. The Khair Mega Hub will serve as a model for integrating advanced technologies with sustainable practices, driving not only environmental impact but also economic value."

The choice of Ras Al-Khair highlights the Kingdom's strategic advantages, including abundant energy resources, a prime geographical location, and a business-friendly environment. The hub will cater to local, regional and international markets, driving Saudi Arabia's ambition to become a world-leading industrial powerhouse in line with its Vision 2030.

The Mega Hub at Ras Al-Khair is part of Vale's broader strategy to develop integrated steelmaking ecosystems in key markets. Alongside Mega Hubs planned for Oman and the UAE, this facility will act as a regional enabler of green steel, supplying high-grade iron ore and fostering collaboration between Vale, steel producers, and other industrial players. Together, these hubs will collectively contribute to Vale's goal of reducing net scope 3 emissions by 15% by 2035, while the company forges ahead with its own commitment to reduce its absolute scope 1 and 2 emissions by 33% by 2030, leading the evolution towards sustainable mining.

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