The Brazilian miner, Vale, and the Royal Commissions of Jubail and Yanbu signed a land reservation agreement to establish a green steel mega hub at the Ras Al-Khair industrial city, located in Saudi Arabia’s eastern coast, 100 km north of Jubail.
Set to develop in two phases, the project has the potential to produce up to 12 million mt of cold-briquetted iron ore (CBI) annually, an alternative expected to accelerate the transition to net-zero steelmaking.
According to Rogério Nogueira, Vale’s executive VP for new business, he explained, “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 project is part of Vale’s strategy to develop integrated steelmaking ecosystems in key markets, in a strategy that includes mega hubs planned for Oman and the UAE, acting as a regional enabler of green steel, and fostering collaboration between Vale, steel producers, and other industrial players.
According to Vale, these hubs will contribute to its goal of reducing net scope 3 emissions by 15% by 2035, and scope 1 and 2 emissions by 33% by 2030.