Bahrain Steel to offer iron ore pellets to Essar's green steel project in Saudi Arabia

An agreement to deliver 4 million tonnes of DR-grade pellets annually (mtpa) to the Green Steel Arabia (GSA) project in Saudi Arabia was inked by Bahrain Steel and Essar Group, a manufacturer and supplier of high-grade iron ore pellets globally.

Naushad Ansari, country kead for Essar Group in Saudi Arabia, "Essar is looking at investing about $4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia". "This LoI will guarantee a 50% raw material supply of iron ore pellets for the Saudi Steel Plant if final contracts are agreed upon and signed. If all goes according to plan, we anticipate starting commercial production in 2027," he stated. "Bahrain Steel is the only GCC-owned pellet producer and the leading supplier of high-quality DR grade pellets to all integrated steel producers in the region," says the company.

"Bahrain Steel's LoI with Essar for the supply of 4 million tonne of DR grade pellets annually is a testament to our commitment to meet the rising demand for DR pellets by the steel industry in the GCC," says Bahrain Steel. In Saudi Arabia, where there is a rising emphasis on sustainable development, we are honoured to partner with Essar Group to support their groundbreaking project to establish the country's first green steel project, said Dilip George, Group CEO of Foulath Holding.

The Essar programme seeks to pioneer environmentally friendly steel manufacturing in the area and establish a benchmark for lowering carbon emissions globally. The project is planned to have a hot strip capacity of 4.0 million tonnes annually and a direct reduced iron (DRI) capacity of 5.0 million tonnes per year, divided into two modules of 2.50 million tonnes each.

The Essar programme seeks to pioneer environmentally friendly steel manufacturing in the area and establish a benchmark for lowering carbon emissions globally. The project is planned to have a hot strip capacity of 4.0 million tonnes annually and a direct reduced iron (DRI) capacity of 5.0 million tonnes per year, divided into two modules of 2.50 million tonnes each.

Along with galvanising and tin plate lines, the project also contains 1.0 million tonnes of cold rolling capacity. The plant will serve important industries like construction, oil & gas, automotive, packaging, and general engineering, all of which are in line with the Kingdom's Vision 2030 goals and its ongoing need for steel products.