Bahrain Steel has joined forces with Essar Group's KSA Green Steel Project to collaborate on the supply of iron ore pellets to the Green Steel Arabia (GSA) initiative.
The partnership will see Bahrain Steel providing an annual supply of 4Mt of DR-grade pellets to Essar Group.
''The letter of intent between Bahrain Steel and Essar for the annual supply of 4Mt of DR grade pellets underpins our commitment to addressing the growing demand for DR pellets in the GCC's steel industry.''
Dilip George, Foulath Holding's Group CEO
Dilip George, Foulath Holding's Group CEO, stated, "The letter of intent between Bahrain Steel and Essar for the annual supply of 4Mt of DR grade pellets underpins our commitment to addressing the growing demand for DR pellets in the GCC's steel industry. We take pride in partnering with Essar Group to support their ground-breaking endeavour to establish Saudi Arabia's inaugural green steel project, aligning with the escalating emphasis on sustainable development in the region."
Naushad Ansari, Essar Group's country head in KSA, added that Essar plans to invest approximately $4.5 billion in the establishment of an integrated steel plant in Ras Al Khair, Saudi Arabia.
Pending the finalisation and signing of definitive contracts, the agreement secures 50% of the raw material supply of iron ore pellets for the Saudi steel plant.
''If our plans unfold as envisioned, we anticipate commencing commercial production by the year 2027."
Naushad Ansari, Essar Group's country head in KSA
Ansari commented, "If our plans unfold as envisioned, we anticipate commencing commercial production by the year 2027."
The Green Steel initiative, designed to establish a global standard for CO2 reduction, will hold a direct reduced iron capacity of 5Mt/yr, including two modules, each capable of producing 2.5Mt/yr, in addition to a hot strip capacity of 4Mt/yr.
Source: Construction World