According to local Middle East sources, Bahrain-based steel company Foulath plans to build four iron ore pelletizing plants across the region in an attempt to become the main supplier of raw materials to the growing steel industry.
Foulath, 50 percent owned by Kuwait's Gulf Investment Corporation (GIC), 25 percent by Qatar Steel, 10 percent each by the Kharafi Group of Kuwait and the National Industries Group of Kuwait, and five percent by the Kuwait Foundry Company, currently produces nearly five million mt of iron ore pellets annually at its pelletizing plant in Bahrain. A new plant in Bahrain is 90 percent constructed and will produce six million mt per year when it commences production at the end of this year. Engineering, procurement and construction (EPC) contracts for the Bahraini plant will be awarded by the third quarter of 2009.
In addition, Foulath plans to build two plants in Alexandria and Suez in Egypt and one in Salalah, Oman, each to produce seven million mt of iron ore pellets annually. EPC contracts for the Salalah plant and one of the Egyptian plants will be awarded by the fourth quarter of this year, with a contract for the second plant in Egypt expected late next year.
In a steel conference in Abu Dhabi, Anurag Bisaria, the company's metal manufacturing projects director, said, "Foulath's proposed plants in Egypt, Bahrain and Oman will source iron ore from mines in Brazil and refine it into more than 30 million mt of iron ore pellets suitable for direct reduction."
"The investments would position Foulath as a dominant player in the global iron ore pellet trade. We are to become a leading source of direct reduction melt pellets in the world," Mr Bisaria added.
Foulath would target initial production of 20 million mt of ore per year.