NEW YORK — U.S. iron ore concentrate producer Magnetation LLC will invest between $300 million and $350 million to build an iron ore pellet plant in Reynolds, Ind.

The Grand Rapids, Minn.-based company will begin constructing the 3-million-tonne-per-year pellet plant in the first quarter of 2013, and expects to start production by the end of 2014 or early 2015.

The company will transport iron ore concentrate from its mineral recovery operations in northern Minnesota to the new plant, which will employ some 100 to 120 people.

The plant’s iron ore pellet production will be used by AK Steel Corp., West Chester, Ohio.

Magnetation LLC is a joint venture between Magnetation Inc., which owns a 50.1-percent stake in the company, and AK Steel, which has a 49.9-percent stake.

The company plans to invest another $120 million to add two additional iron ore concentrate reclamation plants in Minnesota.

A version of this article was first published by AMM sister publication Steel First.