Brazilian mining giant Vale has inaugurated a new $1.37bn iron ore distribution centre in the Straits of Malacca, Malaysia.
Known as Teluk Rubiah Maritime Terminal, the distribution centre can handle 30 million tonnes of iron ore a year and features a deep water wharf and five stockyards where different types of iron ore can be blended and customised to the needs of regional steelmakers.
The facility is equipped with an import system that can unload vessels of up to 400,000 deadweight tonnes (dwt) and an export system with the capacity of loading vessels up to Capesize.
Vale CEO Murilo Ferreira said: "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.
"The distribution centre brings our mines closer to our customers in Asia."
Vale ferrous and strategy executive officer José Carlos Martins said the centre is located about ten days away from other ports in the region and would increase the company's competitiveness by reducing the iron ore delivery time to clients in Asia and South East Asia.
The centre is expected to provide the company with an opportunity to blend ores with different grades from its production systems, and reduce GHG emissions for iron ore delivered in Asia.
Specifically, Teluk Rubiah can receive Valemax vessels that facilitate a 35% reduction in carbon emissions per tonne of ore transported, which would then be delivered to its port destinations in Capesize vessels.
In addition, the fully automated facility is expected to generate approximately 600 direct jobs and 1,200 indirect jobs in the region.
The company has also invested more than $10m in various socio-environmental initiatives in Malaysia, since starting construction of its facility in 2011.
Photo: Teluk Rubiah terminal of Vale. Photo Coutesy: Vale.