Brazil’s Vale has shipped 77,000 tonnes of iron pellets to Saudi Basic Industries Corporation (Sabic) from its new $1.35bn pelletising plant and distribution centre in Oman.

The shipment is the first from the facility and is the first of a recent deal that will involves Vale supplying 34 million tonnes of the pellets, which are used in steel production.

Vale started production at the first of its twin 4.5 million tonne-a-year plants in April. The second is due to come on stream in November and will double the capacity at the complex.

The Vale complex is located at Sohar Industrial Port in Oman and the loading and unloading of the pellets will be carried out at a 1.5-kilometre jetty operated by the Brazilian mining giant.