Brazil’s Vale says that it has not offered Kuwait’s Gulf United Steel Holding Company (Foulath) a share in its $1.35bn iron ore pelletising plant in Oman.

The mining giant also says that the nine million tonnes-a-year (t/y) plant does not have any worries over a gas allocation from the Oman government and is seriously considering plans for further expansion before the facility is operational.

“The availability and high quality of iron ore from Vale’s mines in Brazil coupled with the advanced technology and strategic partnerships in the industry has allowed us to consider seriously a potential production capacity of 12 million-t/y,” says Sergio Leite, Oman’s country manager, Vale.

In mid May MEED reported that Vale had held talks with Foulath regarding the Kuwaiti steel company taking a minority share in the facility (MEED 11:5:10).

The pelletising plant, which will make iron pellets essential to the steel making industry, will consist of two trains each of which will have a capacity of 4.5 million-t/y and cover an area of 1 million square metres. The complex will also include a distribution centre with a throughput capacity of around 40 million-t/y. The plant is due to become operational by the end of 2010.

Vale is one of the world’s largest mining companies, as well as being one of the world’s largest producers of iron ore and pellets.