Japanese firms to build iron metallics project in Oman

Oman News Agency

Oman’s Public Authority for Special Economic Zones and Free Zones (Opaz) has signed a memorandum of understanding with Kobe Steel, a Japanese steel manufacturer, and Mitsui & Company, a global trading investment company, to develop a low-CO₂ iron metallics project in the Special Economic Zone at Duqm (Sezad).

The two Japanese firms signed a land reservation agreement with the Port of Duqm Company and inked another memorandum of understanding with the Centralized Utilities Company (Marafiq) to supply the project with power and water, state-run Oman News Agency reported.

The project is likely to produce five million tonnes of direct reduced iron annually.

Kobe Steel and Mitsui aim to provide a near-term decarbonisation solution to the steelmaking industry. In the long term, the plant targets further decarbonisation by replacing natural gas with hydrogen and carbon capture.

Further, Kobe Steel and Mitsui will conduct a study to commence low-CO₂ iron metallics production by 2027. The product will be supplied to businesses in Asia and other global markets such as Europe.

Dr Ali Masoud Al Sunaidy, chairman of Opaz, said the project is “a great addition” to the steelmaking industry in the sultanate as it will enhance in-country value by supporting local small and medium enterprises.