Muscat – Brazilian mining giant Vale on Tuesday announced the acquisition of OQ Group’s 30 per cent stake in Vale Oman. After this acquisition, Vale Oman will become a 100 per cent foreign capital company in the sultanate, according to an Oman News Agency report.

The acquisition, as per the report, is in line with OQ’s efforts to attract foreign investment and enter partnerships that maximise the utilisation of Oman’s natural resources.

The ownership transfer is expected to conclude in the second quarter of this year with the full support of both parties as Vale Oman continues to make meaningful investments and expand its business in Oman and the region. On conclusion of the ownership transfer, Vale Oman will be 100 per cent owned by Brazil-based Vale SA.

Vale Oman was established in 2007 as a 70:30 joint venture between Vale SA and OQ. The company owns a sophisticated iron ore pelletizing plant in Sohar with a production capacity of over 9mn tonnes, in addition to a distribution center with a capacity of 40mn tonnes.

Vale is experiencing growth in the region with the introduction of a briquetting plant in Sohar. The new plant is expected to be approved by Vale’s board in the middle of 2023, which will significantly contribute towards employment opportunities in Oman and enhance cross-border trade.

Guilherme Reinisch Neves, chairman of Vale Oman, said, “OQ has been an invaluable partner in Oman guiding Vale through several successful business decisions and investments in the region. Our company is incredibly grateful for our long-lasting cooperation. In line with our strategic objectives to be a leader in sustainable mining and a talent-driven organization, Vale Oman continues to bolster its expansion in Oman and the region in line with global net-zero objectives, while investing in local human capital and in-country value initiatives.”

Talal Hamed al Awfi, CEO of OQ Group, said, “Selling OQ’s stake in Vale Oman is in line with Oman Investment Authority’s objective to attract and increase foreign direct investment. We are proud to have been part of Vale’s success in Oman and look forward to witnessing the company’s growth in the coming years.”

He added that the deal emphasises Oman’s position as an attractive destination for foreign investors.

As an active corporate citizen in Oman, Vale supports in-country value (ICV) initiatives, including local supply chain development and CSR projects, with investments topping US$1.4bn to date.