Magnetation LLC announced Tuesday that it has selected Reynolds, Indiana as the site to build its new iron ore pellet plant. The new facility will produce high-quality iron ore pellets. Magnetation currently anticipates breaking ground during Q1 2013. The plant is expected to become operational in late 2014 or early 2015 and employ approximately 100-120 people. Larry Lehtinen, CEO of Magnetation, commented that the Indiana location was chosen due to its convenient access to major railways and highways.
Magnetation will transport iron ore concentrate from its mineral recovery operations in Northern Minnesota to its new plant in Reynolds. The concentrate will be converted into high-quality iron ore pellets for use by AK Steel Corporation. Magnetation expects that the pellet plant itself will require a capital investment of approximately $300-$350 million, with additional iron ore concentrate capacity to be constructed in Northern Minnesota requiring another estimated $120 million investment.
Magnetation LLC is a joint venture between Magnetation, Inc. (50.1 percent owner) and AK Steel Corporation (49.9 percent owner).