NEW YORK SunCoke Energy Inc. and ArcelorMittal SA have extended an existing coke supply contract in the United States by an additional 10 years, SunCoke confirmed Sept. 5.
Lisle, Ill.-based SunCoke provides 1.22 million tons of metallurgical-grade coke annually to Luxembourg-based ArcelorMittal from its Indiana Harbor coke production facility in East Chicago, Ind.
"This contract renewal affirms the strategic, long-term relationship we have with ArcelorMittal," Fritz Henderson, chairman and chief executive officer of SunCoke Energy said.
The extension takes effect Oct. 1 and is similar to its existing contract agreement.
This includes continuing to pass on certain costs in recognition of the $85 million being invested in upgrading the Indiana Harbor facility.
"We anticipate this refurbishment will be substantially complete in the first quarter of 2014, although certain equipment replacement with long lead times will not be fully implemented until early 2015," SunCoke said. "While we expect significant improvement in operating and financial results in 2014, the full impact of the refurbishment and contract economics are expected to be realized in 2015."
The Indiana Harbor coke production operation is SunCokes largest U.S. facility, with 268 coke ovens and an annual capacity of 1.22 million tons.
SunCoke has an 85-percent ownership interest in the Indiana Harbor coke production operation, with DTE Energy Co., Detroit, holding the remaining 15-percent stake.
A version of this article was first published in AMM sister publication Steel First.