Vale opens US$ 1.37 billion iron ore distribution center in Malaysia
Following US$ 1.37 billion in estimated investments, Vale's iron ore distribution center in Malaysia, formally known as Teluk Rubiah Maritime Terminal, is now operational. With a capacity of handling 30 million metric tons of iron ore per year, Teluk Rubiah will serve as a strategic distribution hub in Asia, the company said in its press release.
The facility is comprised of a deep water wharf and five stockyards where different types of iron ore can be blended and customised to the needs of regional steelmakers. Equipped with an import system with the ability to unload vessels of up to 400,000 DWT and an export one with the capacity of loading vessels up to Capesize, the distribution center's operations are fully automated ensuring optimum efficiency in the process. Until October, Teluk Rubiah has already unloaded eight Valemaxes and loaded five Capesizes successfully.
"Teluk Rubiah is a cornerstone of Vale's business strategy of investing in solutions which aim to enhance the company's capability to supply iron ore more efficiently to the Asian markets", said Mr. Murilo Ferreira, Vale's Chief Executive Officer. "The distribution center brings our mines closer to our customers in Asia."
Located in the Straits of Malacca, about 10 days far from other ports in the region, the distribution center will allow the company to reduce the iron ore delivery time to our clients in Asia and Southeast Asia, increasing our competitiveness, added Mr. José Carlos Martins, Executive Officer for Ferrous and Strategy.
With Teluk Rubiah, Vale will have the opportunity to blend ores with different grades from its production systems, which were always sold on the market separately, each one with different specific features, providing greater flexibility for supplying iron ore. Furthermore, the distribution center, combined with a fleet of very large ore carriers, represents a more sustainable solution, contributing to a reduction in GHG emissions for iron ore delivered in Asia. Teluk Rubiah is capable of receiving Valemax vessels, which allow for a 35% reduction in carbon emissions per ton of ore transported. From there, the iron ore is transported in Capesize vessels to its port destinations.
Vale's operations in Teluk Rubiah will create approximately 600 direct jobs and 1200 indirect jobs in region. More than 90% of Vale's permanent employees are locals and 60% of them joined the company through apprenticeship programs organized by the company in order to recruit and train fresh graduates from local communities. Since commencing construction of its facility in 2011, Vale has invested more than US$ 10 Million in various socio-environmental initiatives.
