Conflict Poses No Risk to HBI Project Timeline: What This Means for Investors and Businesses in Oman
MUSCAT, MARCH 30 – The timeline for the first phase of Meranti Green Steel’s low-carbon iron production project at the Duqm Special Economic Zone (SEZ) is expected to remain unaffected by the ongoing conflict involving Iran, highlighting international investors’ confidence in Oman’s stability.
Responding to inquiries from Oman Observer, Meranti CEO Dr. Sebastian Langendorf stated, “No — not based on how we currently assess the situation.” He confirmed that the project’s commissioning is planned for mid-2029, with commercial operations beginning in early 2030, consistent with agreements made with offtakers.
Singapore-based Meranti Green Steel is developing a major facility to produce 2.5 million tonnes per annum (mtpa) of hot briquetted iron (HBI) at Duqm SEZ. This initiative is part of a broader cross-border strategy that separates ironmaking and steelmaking, with Oman focusing on producing low-carbon HBI for export and further steel production in Thailand.
Originally, the Final Investment Decision (FID) was anticipated around mid-2026. However, this has been pushed to the third quarter of 2026 to allow Meranti’s international partners sufficient time to assess the current regional conditions. Dr. Langendorf emphasized, “Oman — and Muscat in particular — remains a stable, orderly and peaceful business environment. This stability must be clearly communicated to international stakeholders, especially larger organizations with investment or credit committees, which requires time.”
The green iron facility will be developed on a 150-hectare site within a low-carbon steel mega hub planned by Brazilian mining company Vale in Duqm. The complex will supply green iron in the form of HBI for both regional and export markets.
Dr. Langendorf noted, “We are already in discussions to formalize the land lease. Being part of Duqm SEZ, the land is already designated. We are working closely with the Public Authority for Special Economic Zones and Free Zones (OPAZ) and the Port of Duqm to complete all necessary documentation. Our site lies within the Vale mega hub, where we have prepared a layout and are integrating our engineering plans accordingly.”
The project will initially source much of its feedstock from Vale’s pelletizing plant in Sohar, with supplementary sources from other pelletizing partners if needed. Positioned about 2–3 kilometers from the Port of Duqm, the plant will utilize the existing commercial port and electric trucks operated in partnership with logistics providers to transport materials.
Dr. Langendorf attributed Meranti’s success in securing offtake commitments to Oman’s inherent advantages: “Oman is recognized as a stable and neutral production environment with excellent infrastructure, a perception unchanged by current geopolitical tensions. The country’s blend of renewable energy and natural gas, supported by a pragmatic energy transition strategy, offers a flexible and competitive production platform, especially for the gradual integration of hydrogen. Additionally, Oman’s strategic location facilitates efficient global transport, making it an ideal production hub.”
He added that Meranti’s proven industry expertise and track record in delivering complex projects have further strengthened investor confidence. “Our team has extensive experience managing large projects in challenging environments, and our competitive, pragmatic commercial terms have attracted significant interest in our product,” he concluded.
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Meranti Green Steel’s commitment to its low-carbon iron project at Duqm SEZ underlines Oman’s stability and appeal as a reliable investment hub despite regional geopolitical tensions. This creates a فرصة استراتيجية للشركات والمستثمرين to capitalize on Oman’s robust infrastructure, renewable energy integration, and favorable location in the emerging green steel value chain. Smart investors should consider leveraging Oman’s flexible production ecosystem and growing role in sustainable industrial projects to secure long-term growth in the green economy.
