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Thursday, March 3, 2011

Vale halts work at Oman iron plant over protests


Wed Mar 2, 2011 8:07pm GMT

* Follows unrest in industrial center of Sohar
* Facility still in commissioning phase

RIO DE JANEIRO, March 2 (Reuters) - Brazilian mining giant Vale (VALE5.SA: Quote) said on Wednesday it had temporarily halted commissioning at its iron pellet plant in Oman due to unrest caused by protests in favor of political reform.

"As a preventative measure, Vale has temporarily interrupted the commissioning at (the) pellet plant until the situation normalizes," the company said in an e-mailed statement. "The workers, most of them Omani, were told to stay at home."

The commissioning phase consists of testing carried out after a facility has been built but before production begins. Continued unrest in Oman could potentially delay the start of production.

The plant is based in Sohar, Oman's main industrial center, where unrest broke out this week in the usually tranquil Gulf state following a wave of protests in the Arab world.

It will have an annual production capacity of 9 million tonnes of iron ore pellets and is expected to be fully commissioned this year.(Reporting by Brian Ellsworth; Editing by Walter Bagley,sourced:Thomson Reuters)

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