NEW YORK Swedish iron ore producer Luossavaara-Kiirunavaara AB (LKAB) has signed a supply agreement with Nucor Corp. to provide the steelmaker pellets for its direct-reduced iron facility set to start up in the coming months.
The Luleå, Sweden-based producer will begin annual delivery of 750,000 tonnes of pellets to Nucor this summer, the company said in a July 29 statement.
LKAB, which previously delivered small quantities of pellets to the United States, said that the move into the U.S. market was driven by plentiful and abundant shale gas plays.
The deal is an"important breakthrough" into the expansive U.S. market, Goran Ottosson, LKABs sales and marketing director in Europe and North America, said in a statement.
Charlotte, N.C.-based Nucors 2.5-million-ton-per-year DRI facility is expected to begin hot commissioning in August and production at the plant will start by the end of September, its president and chief executive officer John Ferriola said during a recent earnings call (amm.com, July 19). He added that the port facility in Louisiana will be capable of receiving vessels up to 950-feet long and cargos of about 115,000 tonnes.
Nucor could not be reached for further comment.