Essar secures pellet supply for planned Saudi steel mill

Indian conglomerate Essar has signed a letter of intent (LoI) with Bahrain Steel for delivery of 4 Mt/y of direct-reduced (DR) grade iron ore pellets for the group’s proposed integrated steel plant in Ras Al Khair, Saudi Arabia.

The deal secures half of the plant’s required pellet supply, said Naushad Ansari, who heads Essar operations in Saudi Arabia. “If all goes as planned, we expect commercial production to begin from the year 2027,” he added.

The group plans to spend €4.5 bn (€4.14 bn) to set up an integrated works based on green steel processes. The complex will have a direct reduced iron (DRI) plant with 5 Mt/y capacity and a mill capable of producing 4 Mt/y of hot strip steel as well as having 1 Mt/y of cold rolling capacity along with galvanising and tin plate lines to serve the construction, oil, gas, automotive, packaging and general engineering markets.

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