UAE’s only integrated steel facility Emirates Steel has reportedly announced that it has entered into a four-year iron ore supply agreement with Brazilian multinational mining corporation Vale S.A. to supply raw iron ore to its Abu Dhabi steel production project.
Report cite, the long-term agreement was signed by Vale’s Executive Director Peter Poppinga and Emirates Steel CEO HE Saeed Ghumran Al Remeithi under the presence of both firms’ senior officials during an official meeting that was conducted at the Emirates Steel office.
According to a report by Trade Arabia, Emirates Steel has a massive requirement of iron ore pellets to the tune of over 6-million tons each year to keep its Abu Dhabi steel production plant running at peak production levels and Vale – known as the world’s biggest producer of nickel and iron ore – is comfortably capable of meeting these high requirements.
Emirates Steel CEO, Al Remeithi stated that the supply agreement with Vale falls in line with the company’s strategy that aims to obtain flexible iron ore sources at stable, long-term and competitive prices. Al Remeithi further added that the new partnership deal would be playing a crucial role in furthering the growth of the company’s Abu Dhabi steel manufacturing unit and help Emirates Steel realize its vision of becoming the best steel manufacturer in the world with the capacity to provide top-quality services, products and solutions to its clients.
Reliable reports claim that Emirates Steel is extremely confident that the new deal would allow it to achieve its business targets, facilitate more flexibility to better serve its customers and to focus upon operational excellence.
Vale Executive Director, Peter Poppinga stated that the deal represents the visions of two companies amalgamated into a long-term strategic partnership while also showcasing Vale’s willingness to support the steel manufacturing industry of the Middle East through leveraging productivity and performance of high-quality products and competitiveness.
According to reports, the financial information related to the partnership agreement has not been released yet.