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.
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
continuing to pass on certain costs in recognition of the $85
million being invested in upgrading the Indiana Harbor
"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
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