Emirates Steel signs new iron ore pellet supply deal with Vale
Emirates Steel, the only integrated steel plant in the UAE, has signed a four-year (2018-2021), high value contract with Vale, the world’s largest producer of iron ore and iron ore pellets, to supply iron ore pellets for its steel production in Abu Dhabi.
Both companies have a long-standing business relationship that commenced in 2007 and has through this four-year contract strengthened into a strategic partnership. Emirates Steel has an iron ore pellet requirement of around 6 million tons per year.
The agreement was signed by HE Saeed Ghumran Al Remeithi, CEO of Emirates Steel and Mr. Peter Poppinga, Executive Director, Vale during an official meeting held at the Emirates Steel office in the presence of senior officials from both companies.
“The agreement with Vale comes in line with Emirates Steel strategy, which aims to secure flexible source of iron ore at competitive, stable and long term prices. This new partnership plays a vital role to further strengthening the growth of our steel production in Abu Dhabi, as well as realizing our vision of being a world class steel manufacturer providing the highest quality products, services and solutions to our customers and maximizing returns to our shareholders,” said Mr. Al Remeithi.
Peter Poppinga, Executive Director, VALE said: “The long-term agreement resembles the two companies visions combined in long-term partnership. Also shows Vale’s strong willingness to support the Middle East steel making industry through leveraging on competitiveness, productivity and performance with high quality products.”