Vale advances Oman maintenance shutdowns to counter war impacts

Vale SA, the world’s top iron ore producer, has brought forward a scheduled maintenance shutdown of its two pellet plants in Oman as a strategy to mitigate potential impacts from the Iran war, according to a person familiar with the matter.

The shutdowns, initially planned for the first half of the year, have been brought forward by a few weeks, said the person who asked not to be identified discussing private matters. The person declined to provide specifics, including the length of time the plants would be offline.

Vale’s Oman operations have an annual production capacity of 9 million tons of iron ore pellets — roughly 29% of the company’s overall output last year.

The Brazilian company sells to clients in Gulf nations including Saudi Arabia, Qatar and the United Arab Emirates, though Iran’s blockade of the Strait of Hormuz is preventing deliveries, the person said. The plant closure plans help explain why ships carrying Vale’s Brazilian iron ore have been diverted from the Middle East.

Vale isn’t considering changing its full-year output guidance, the person said, with forecast pellet production at 30 million to 34 million tons this year.

A Vale spokesperson declined to comment.

(By Mariana Durao)