In a press release, Cliffs Natural Resources announced the development of its first hot briquetted iron (HBI) production plant at the Port of Toledo in Ohio. The estimated investment in the entire project is approximately $700 million. The state of Ohio offered approximately $30 million in grants and other financial incentives and was attractive as a result of it low-cost natural gas resources, proximity to future customers and logistical advantages including rail carriers.
Lourenco Goncalves, Chairman, President and CEO, said, “This is an important strategic milestone for Cliffs as we begin to implement our plans to be the sole producer of high-quality HBI for the EAF steel market in the Great Lakes region.”
Cliffs anticipates breaking ground in early 2018, with the production of HBI beginning in mid-2020. Midrex Technologies was selected to design, engineer and procure equipment for the new plant, which will have the nominal capacity to produce 1.6 million tons of HBI annually. The facility will create 130 permanent jobs and more than 1,200 construction jobs over the next two years.
Cliffs is a major supplier of iron ore pellets to the North American steel industry from its mines and pellet plants located in Michigan and Minnesota.