Construction work on the giant iron ore pelletising plant of Vale do Rio Doce (Vale) is set to commence shortly at the Port of Sohar, following the signing of two key contracts yesterday. Well-known Omani engineering construction firm Galfar Engineering and Contracting SAOGGalfar Engineering and Contracting SAOG will undertake the civil works package at a cost of RO 18.5 million. Another local firm, Towell Construction & Company, will execute a separate contract for the construction of substations and yard facilities at a cost of RO 10.3 million.
The two contracts will lead to the accelerated development of the massive iron ore pelletising plant and distribution centre, which the Brazil-based conglomerate is developing at the industrial port with an investment of $1.356 billion. The venture involves an iron ore pelletising plant with a production capacity of nine million tonnes per year (mtpy) of direct reduction pellets. In addition, the Sohar facility will also serve as a distribution centre with a capacity to handle 40 mtpy of pellets. The plant is scheduled for start up in December 2010.
Underlining the significance of the project, top officials of Vale, GalfarGalfarLoading..., Towell and the Port of Sohar attended the contracts signing ceremony at the Crowne Plaza Muscat yesterday. Vale was represented by Silmar Magalhaes Silva, Director of Ferrous Projects, and Sergio Leite, Managing Director of Vale Oman. Signing for GalfarGalfarLoading... was Dr Hans Erlings, CEO, who applauded Vale on its decision to invest in Sohar.
The development of a steel industry in Sohar, he said, opens up a much-needed domestic source of steel, thus obviating the need to procure supplies from faraway markets like China and India. He also welcomed the contract as an opportunity for GalfarGalfarLoading... to showcase its engineering construction prowess, and pledged to execute its contract "in the most effective and economical way".
The largest construction company in Oman, GalfarGalfarLoading...'s capabilities span all key segments of the construction sector, including oil and gas, roads and bridges, and utilities and civil projects. The company's turnover, estimated at well over RO 330 million in 2008, is projected to exceed RO 450 million in 2009. With an order book of over RO 810 million in projects, GalfarGalfarLoading... is venturing further afield into markets in the United Arab Emirates, Libya and beyond. It has already made its maiden foray into the lucrative Indian market with an intercity dualisation contract under its belt.
Major projects in hand include the Hasik-Shuwaimiyah road in Dhofar Governorate, the Expressway Project in Muscat Governorate, the Duqm Dry Dock, and a slew of power transmission, primary substation, and other electromechanical and HVAC contracts. The company is also executing a number of EPC projects in the oil and gas sector. "With several projects both in the government and the private sectors waiting to be awarded, GalfarGalfarLoading... will continue to keep up its reputation as a partner in the development of Oman," says Dr Erlings.
The pelletising project -- Vale's first wholly owned greenfield investment in the ferrous sector outside Brazil -- is expected to have huge socioeconomic benefits for the Sultanate as it positions Sohar as a pellet distribution hub for steel plants across the Middle East. The project envisages two parallel plants each of 4.5-mtpy capacity. Work on the plants is slated to commence during April-May 2009, with the first plant due to come on stream in December 2010, and the second plant to follow suit a month later in January 2011. India's Essar is undertaking the detailed engineering design work on the project. Project capacity is proposed to be ramped up to 18 mtpy in future expansions.
Separately, the Sohar International Development Company (SIDC), a partnership of the Port of Rotterdam and the Government of Oman, will construct a deepwater bulk jetty to support Vale's operations. The roughly 1.2-kilometre jetty complete with platform and trestle, will be able to accommodate 400,000-tonne capacity vessels bringing ore from Brazil. The jetty will boast a draft of -24 metres on one side, with a capability to accommodate Capesize vessels on the other.
The two contracts will lead to the accelerated development of the massive iron ore pelletising plant and distribution centre, which the Brazil-based conglomerate is developing at the industrial port with an investment of $1.356 billion. The venture involves an iron ore pelletising plant with a production capacity of nine million tonnes per year (mtpy) of direct reduction pellets. In addition, the Sohar facility will also serve as a distribution centre with a capacity to handle 40 mtpy of pellets. The plant is scheduled for start up in December 2010.
Underlining the significance of the project, top officials of Vale, GalfarGalfarLoading..., Towell and the Port of Sohar attended the contracts signing ceremony at the Crowne Plaza Muscat yesterday. Vale was represented by Silmar Magalhaes Silva, Director of Ferrous Projects, and Sergio Leite, Managing Director of Vale Oman. Signing for GalfarGalfarLoading... was Dr Hans Erlings, CEO, who applauded Vale on its decision to invest in Sohar.
The development of a steel industry in Sohar, he said, opens up a much-needed domestic source of steel, thus obviating the need to procure supplies from faraway markets like China and India. He also welcomed the contract as an opportunity for GalfarGalfarLoading... to showcase its engineering construction prowess, and pledged to execute its contract "in the most effective and economical way".
The largest construction company in Oman, GalfarGalfarLoading...'s capabilities span all key segments of the construction sector, including oil and gas, roads and bridges, and utilities and civil projects. The company's turnover, estimated at well over RO 330 million in 2008, is projected to exceed RO 450 million in 2009. With an order book of over RO 810 million in projects, GalfarGalfarLoading... is venturing further afield into markets in the United Arab Emirates, Libya and beyond. It has already made its maiden foray into the lucrative Indian market with an intercity dualisation contract under its belt.
Major projects in hand include the Hasik-Shuwaimiyah road in Dhofar Governorate, the Expressway Project in Muscat Governorate, the Duqm Dry Dock, and a slew of power transmission, primary substation, and other electromechanical and HVAC contracts. The company is also executing a number of EPC projects in the oil and gas sector. "With several projects both in the government and the private sectors waiting to be awarded, GalfarGalfarLoading... will continue to keep up its reputation as a partner in the development of Oman," says Dr Erlings.
The pelletising project -- Vale's first wholly owned greenfield investment in the ferrous sector outside Brazil -- is expected to have huge socioeconomic benefits for the Sultanate as it positions Sohar as a pellet distribution hub for steel plants across the Middle East. The project envisages two parallel plants each of 4.5-mtpy capacity. Work on the plants is slated to commence during April-May 2009, with the first plant due to come on stream in December 2010, and the second plant to follow suit a month later in January 2011. India's Essar is undertaking the detailed engineering design work on the project. Project capacity is proposed to be ramped up to 18 mtpy in future expansions.
Separately, the Sohar International Development Company (SIDC), a partnership of the Port of Rotterdam and the Government of Oman, will construct a deepwater bulk jetty to support Vale's operations. The roughly 1.2-kilometre jetty complete with platform and trestle, will be able to accommodate 400,000-tonne capacity vessels bringing ore from Brazil. The jetty will boast a draft of -24 metres on one side, with a capability to accommodate Capesize vessels on the other.