NEW YORK Essar
Steel Minnesota LLC has postponed the opening of its taconite
plant and iron ore processing facility in Nashwauk, Minn.,
until the second half of 2014.
The taconite mine is
currently under construction and was scheduled to start
operations this fall.
The opening is being
delayed due to financing issues surrounding the companys
decision to increase annual production to 7 million tons from 4
million, Madhu Vuppuluri, president and chief executive
officer, told the Star Tribune.
The company originally
planned to spend $1.1 billion on the project, but that has
increased to $1.7 billion.
Essar Steel Minnesota,
Hibbing, Minn., is "at the advanced stages of" securing the
additional $600 million needed to finish the project, Vuppuluri
The company earlier
this year signed an offtake agreement to supply 3.5 million
tonnes per year of iron ore pellets to ArcelorMittal USA Inc.,
Chicago (amm.com, Feb. 11). That deal will last for 10
Essar Steel Minnesota
didnt respond to a request for comment.
A version of this
article was first published in AMM sister publication Steel