OQ Group sells its 30% Stake in Vale Oman
Press release
Corporate
OQ Group sells its 30% Stake in Vale Oman
February 14, 2023
OQ, a global integrated energy group, announced today that it sold its stake in Vale Oman Pelletizing Company LLC, which accounts for 30% of the company’s shares. By virtue of this agreement, Vale Oman became a 100% foreign shareholding company.
This divestment came as part of the efforts exerted by OQ to attract foreign investments and enter into partnerships that contribute to maximizing the utilization of Omani natural resources. The selling of OQ’s stake in Vale Oman will allow the company to become an independent contributor to Oman’s economy and society. The acquisition process is expected to conclude in Q2, 2023 with the full support of both parties as Vale continues to make meaningful investments and expand its business in Oman and the region.
Vale Oman owns a sophisticated iron ore pelletizing plant with a production capacity of over 9 million tons, in addition to a distribution center with a capacity of 40 million tons. In 2021, Vale exported 8.2 million tons of iron ore. Vale is experiencing growth in the region with the introduction of a Briquetting plant in Sohar, Oman. This will create more employment opportunities in Oman and enhance cross-border trade.
On this occasion, Engineer Talal bin Hamed Al-Awfi, CEO of OQ Group said: “Selling OQ’s stake in Vale Oman comes as part of our efforts to attract foreign investments. It goes in line with OQ’s divestment strategy that aims at attracting new investments with the objective of maximizing the utilization of Omani natural resources. We are proud to have been part of Vale’s success in the Sultanate and look forward to witnessing the company’s growth in the coming years. Oman is an attractive, rapidly expanding market, and foreign businesses that operate here require a certain level of autonomy to create maximum value for our country.”
For his part, Guilherme Reinisch, Chairman of VOPC at Vale said: “OQ has been an invaluable partner in Oman guiding Vale through several successful business decisions and investments in the region. The company is incredibly grateful for our long-lasting cooperation. In line with our strategic objectives to be a leader in sustainable mining and a talent-driven organization, Vale continues to bolster its expansion in Oman and the region in line with global net zero objectives, while investing in local human capital and in-country value initiatives.”
As an active corporate citizen in Oman, Vale supports in-country value (ICV) initiatives, including local supply chain development and CSR projects, with investments topping $1.4bn to date. Aligned with the global sustainability policy of the company, Vale continues to build a positive legacy in the Sultanate.
A large portion of Vale’s ICV commitments are made up of supporting local SMEs in day-to-day business activities and engaging in knowledge transfer sessions, as well as supporting CRS initiatives through its partnership with the Jusoor Foundation, and the upliftment of the wider al Batinah North region with both environmental and social initiatives. Vale remains committed to developing the youth of Oman Omani talent. Currently, the number of talented Omani employees at the company stands at 75% and Omanis make up 80% of the senior leaders in Vale.
Vale Oman owns a sophisticated iron ore pelletizing plant with a production capacity of over 9 million tons, in addition to a distribution center with a capacity of 40 million tons. In 2021, Vale exported 8.2 million tons of iron ore. Vale is experiencing growth in the region with the introduction of a Briquetting plant in Sohar, Oman. This will create more employment opportunities in Oman and enhance cross-border trade.
On this occasion, Engineer Talal bin Hamed Al-Awfi, CEO of OQ Group said: “Selling OQ’s stake in Vale Oman comes as part of our efforts to attract foreign investments. It goes in line with OQ’s divestment strategy that aims at attracting new investments with the objective of maximizing the utilization of Omani natural resources. We are proud to have been part of Vale’s success in the Sultanate and look forward to witnessing the company’s growth in the coming years. Oman is an attractive, rapidly expanding market, and foreign businesses that operate here require a certain level of autonomy to create maximum value for our country.”
For his part, Guilherme Reinisch, Chairman of VOPC at Vale said: “OQ has been an invaluable partner in Oman guiding Vale through several successful business decisions and investments in the region. The company is incredibly grateful for our long-lasting cooperation. In line with our strategic objectives to be a leader in sustainable mining and a talent-driven organization, Vale continues to bolster its expansion in Oman and the region in line with global net zero objectives, while investing in local human capital and in-country value initiatives.”
As an active corporate citizen in Oman, Vale supports in-country value (ICV) initiatives, including local supply chain development and CSR projects, with investments topping $1.4bn to date. Aligned with the global sustainability policy of the company, Vale continues to build a positive legacy in the Sultanate.
A large portion of Vale’s ICV commitments are made up of supporting local SMEs in day-to-day business activities and engaging in knowledge transfer sessions, as well as supporting CRS initiatives through its partnership with the Jusoor Foundation, and the upliftment of the wider al Batinah North region with both environmental and social initiatives. Vale remains committed to developing the youth of Oman Omani talent. Currently, the number of talented Omani employees at the company stands at 75% and Omanis make up 80% of the senior leaders in Vale.