Posted on 18 Aug 2023
Bahrain Steel has signed a letter of intent (LoI) to supply 4 million tonnes/year of iron ore pellet to Green Steel Arabia (GSA), Essar Group’s prospective steelworks to be located in Ras Al Khair, Kallanish notes.
Essar is investing over SAR 16.87 billion ($4.5 billion) into 4m t/y of continuous casting and hot strip capacity, 1m t/y of cold rolled coil capacity, and a tin plate line. The new facility will also have two direct reduced iron plants, each with a 2.5m t/y capacity.
“This LoI, post final contracts being agreed and signed, will secure 50% raw material supply of iron ore pellets for the Saudi steel plant. If all goes as planned, we expect commercial production to begin from the year 2027,” says Essar Group country head in Saudi Arabia Naushad Ansari.
The agreement “is a testament to our commitment to meet the growing demand for DR pellets by the steel industry in the GCC,” says Dilip George, chief executive of Bahrain Steel parent company Foulath. “We are proud to collaborate with Essar Group to support their pioneering project for setting up the first green steel project in Saudi Arabia, where there is a growing focus on sustainable development.”
Source:Kallanish
