The new facility is being built in Saudi Arabia. Image: Adobe Stock

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 solution that the company says will accelerate the transition to net-zero steelmaking.

鈥淭his 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,鈥� said Rog茅rio Nogueira, executive vice president of commercial and new business at Vale.

鈥淭he Khair Mega Hub will serve as a model for integrating advanced technologies with sustainable practices, driving not only environmental impact but also economic value.鈥�

Vale says that the facility will act as a regional enabler of green steel, supplying high-grade iron ore and fostering collaboration between the company, steel producers, and other industrial players.

The facility is part of Vale鈥檚 broader strategy to develop integrated steelmaking ecosystems in key markets, with mega hubs also planned for Oman and the UAE. Vale has committed to reducing net scope 3 emissions by 15% by 2035 and to reduce its absolute scope 1 and 2 emissions by 33% by 2030.