On May 29, Brazilian mining giant Vale announced that it has entered into an agreement with Oman Oil Company S.A.O.C. (OOC), a company wholly-owned by the government of the Sultanate of Oman, to sell 30 percent of Vale Oman Pelletizing Company LLC (VOPC) for US$125 million.
The transaction remains subject to the terms set forth in the definitive share purchase agreement to be signed after the fulfillment of precedent conditions.
According to the company statement, Vale is investing in a pelletizing plant and an industrial logistics center located within the Sohar Industrial Port Complex in Oman.
VOPC is the subsidiary that was formed by Vale to manage the construction and operation of the pelletizing plant. The plant start-up is scheduled for the second half of 2010 and will have a nominal production capacity of nine million metric tons of direct reduction pellets per year.
Upon completion, the industrial logistics center will encompass a maritime terminal and a distribution center, with handling capacity of up to 40 million metric tons of iron ore and pellets per year.