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.
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.
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.