Cleveland-Cliffs Inc. has announced the reaching of an agreement with Kobe Steel to license Kobe's patented ITmk3 iron-making process, an inexpensive and rotary furnace-based reduction technology that converts taconite ore into iron nuggets.
The 10-year agreement will allow Cliffs to work on the process in North America, Brazil, Australia, and perhaps expand to take in other regions, while Kobe Steel offers technical support.
Also announced, the two companies have agreed to participate in a joint-venture to construct a 500,000 mt per year iron nugget facility on one of Cliffs' US mining properties. The ultimate location and process period is still undetermined.
Chairman, president and CEO of Cleveland-Cliffs Inc, Joseph A. Carrabba commented, "We have been very interested in this technology since successfully testing the process in a pilot-plant located at our Northshore facility. The alliance with Kobe moves us closer to realizing our mutual goal of commercializing and exploiting this innovative process."