NEW YORK Essar Steel
Minnesota LLC is in talks to build a direct-reduced iron (DRI)
plant as part of a joint venture with several leading U.S.
The company updated Iron Range
Resources and Rehabilitation Board officials on the project,
which has an estimated cost of $1.5 billion, according to local
The DRI plant will be located at
its existing facility in Nashwauk, Minn., which is located next
to its iron ore mine. A taconite iron ore mine and processing
center also are in development, and the company plans to start
production of iron ore pellets by late 2013.
Once production starts, iron ore
will be used to feed its DRI plant, and the excess will be
transported to sister company Essar Steel Algoma Inc. in Sault
Ste. Marie, Ontario. It will also be sold to other U.S. mills
through the spot market and to parent Essar Steels mills
Essar Steel Minnesota declined
to comment or provide further details.
A version of this article was
first published by AMM sister publication Steel First.