RIYADH: Oman and Etihad Rail Co., the developer and operator of the UAE-Oman Rail Network, has signed a memorandum of understanding with Vale, one of the world’s largest mining firms, to utilize the rail project in the mining sector.
The MoU seeks to explore utilizing rail to transport iron ore and its derivates between Oman and the UAE connecting Vale’s industrial complex in Sohar Port and Freezone to its planned industrial complex in the UAE.
The MoU was signed by Ahmed Al-Musawa Al-Hashemi, CEO of the Oman and Etihad Rail Co., and Rogerio Nogueira, director of business development at Vale.
“The MoU highlights the interest of potential users in utilizing the UAE-Oman Railway Network and benefiting from its fast, sustainable, reliable, and cost-effective services,” Al-Hashemi said.
The signing ceremony was witnessed by Suhail bin Mohammed Al-Mazrouei, minister of energy and infrastructure and chairman of Oman and Etihad Rail Co., and Elaina Zugaib, Brazilian ambassador to the UAE.
“The agreement is in line with our desire to continue to work on and establish strategic partnerships with major companies in the United Arab Emirates and the Sultanate of Oman, supporting economic growth, continued development, and investment in both countries,” Al-Mazrouei said in a statement.
Commenting on the MoU, Nogueira said that the agreement supports Vale’s plans to develop industrial complexes in the UAE and Oman to produce low-carbon products for the steelmaking industry.
He added that Vale’s partnership with Oman and Etihad Rail Co. reinforces the progress of the regional logistics sector, which enables various economic and trade activities, and provides several benefits, including creating new job opportunities and providing high-quality transport solutions.
Vale, headquartered in Brazil, is one of the largest mining companies in the world, operating in five continents.
The company is a top producer of iron ore. Vale supported the development of Brazil’s railway network, which spans over 2,000 km and has been operating in Sohar Port and Freezone for 12 years.