Bahrain Steel, a leading producer of high-grade iron-ore pellets, has signed a letter of intent (LoI) for partnership with multinational conglomerate Essar Group to supply iron ore pellets for the Green Steel Arabia (GSA) project in Saudi Arabia.
Under this partnership, Bahrain Steel, a wholly-owned unit of investment company Foulath Holding, will deliver 4 million tonnes of DR-grade pellets per annum to Essar Group.
The Essar project is set to be the region’s first green steel project aiming to set the global benchmark in the reduction of CO2, said a top official.
“Essar is looking at investing about $4.5 billion to set up an integrated steel plant in Ras Al Khair, Saudi Arabia. This LoI, post final contracts being agreed and signed, will secure 50 per cent raw material supply of iron ore pellets for the Saudi steel plant,” said Naushad Ansari, the Country Head for Essar Group in Saudi Arabia.
“If all goes as planned, we expect commercial production to begin from the year 2027,” he added.