Meranti advances key milestones for Duqm iron project

MUSCAT: Ahead of a much-anticipated Final Investment Decision (FID) on its landmark low-carbon iron production plant in Oman, Meranti Green Steel says it is currently focused on delivering a number of key development milestones critical to advancing the project to bankability and execution readiness.
According to Meranti CEO Dr Sebastian Langendorf, these milestones span financing, permitting, engineering, EPC tendering and contract finalisation—prerequisites for a looming FID on the proposed 2.5 million tonnes per annum (mtpa) hot briquetted iron (HBI) plant in the Duqm Special Economic Zone.
“Over the next three to four months, we have several important milestones, including finalising the financing package—both debt and equity—completing permitting, advancing engineering, and launching the EPC tender process,” Dr Langendorf said.
“We are also working to convert existing term sheets—across upstream supply, downstream offtake and other agreements—into binding long-form contracts. Infrastructure planning is progressing in parallel as part of the engineering work. Overall, multiple workstreams are advancing simultaneously, and we believe we are making good progress.”
Speaking to the Observer during his latest visit to the Sultanate, the CEO said the trip—coming less than a month after the formal launch of Meranti’s office in Muscat—forms part of ongoing engagement with the Public Authority for Special Economic Zones and Free Zones (OPAZ), Hydrom, Invest Oman, and Integrated Gas Company (IGC), as well as existing business partners. These engagements are helping prepare the company for the next phase as it moves towards FID and eventual implementation, he said.
At the same time, preparatory work is progressing on the multibillion-dollar complex in Duqm. “We expect to launch a formal tender process in the coming months. We have identified several target EPC partners, typically large international contractors. Our priority is to minimise delivery risk—ensuring the project is completed on time, within budget and safely. To achieve this, we prefer to work with partners who have prior experience working together, particularly with our technology provider,” he noted.
Significant opportunities are also expected for local companies, particularly at the subcontractor level, spanning civil, mechanical, electrical and installation works. “We are already facilitating connections between local firms and potential EPC partners,” Dr Langendorf added.
The CEO also welcomed the onboarding of a new strategic partner, whose identity, he said, will be disclosed in the “not-too-distant future”. Asked about the potential for an Omani equity partner—such as Oman Investment Authority (OIA) or one of its subsidiaries—he said this would be a strong fit. “In general, we aim to create a balanced shareholding structure between international and local partners. Each shareholder should bring a strategic angle—either as part of our upstream or downstream supply chain, or as a local partner helping us navigate the domestic landscape and networks.”
Meranti is also working to convert key term sheets into binding agreements, the finalisation of which will enable full disclosure of the promoter company’s equity structure. Under commitments announced recently, the company has secured long-term offtake pledges covering the full 2.5 mtpa output of the first module of its green HBI plant in Duqm. Volumes have been allocated to a group of international partners, including Thyssenkrupp Materials Trading, INTERFER, and Glencore, as well as to its own downstream steel facility in Thailand, with provisions for additional volumes linked to a potential second phase.
On the financing side, Meranti is also exploring participatory roles for local banks. “We have made good progress internationally, with KfW IPEX-Bank as lead arranger, and planned export credit agency (ECA) coverage. At the same time, we are engaging with several local banks. While we have not finalised the balance between international and local lenders, we see clear potential for local participation. Part of my visit has also involved meetings with banks,” he added.