On Tuesday, Rapids, Minnesota-based Magnetation LLC announced that it has successfully closed $110 million of senior secured credit facilities. Proceeds from the credit facilities will be used for growth-related capital expenditures for the second phase of Magnetation's development, which includes the previously-announced construction of a new plant in Reynolds, Indiana that will produce high-quality iron ore pellets.
Magnetation LLC is a joint venture between Magnetation, Inc. (50.1 percent owner) and AK Steel Corporation (49.9 percent owner). Magnetation LLC reclaims high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Currently, Magnetation LLC owns and operates two reclamation plants located in Keewatin, Minnesota and Taconite, Minnesota. Magnetation LLC expects to construct a 3 million metric ton per year iron ore pellet plant in Reynolds, Indiana and two additional concentrate reclamation plants located northwest of Coleraine, Minnesota and southeast of Calumet, Minnesota.