According to local media reports, flat rolled steelmaker Essar Steel Minnesota has increased its pelletizer plant permit with the Minnesota Department of Natural Resources by 3 million tons--on top of the 4.1 million tons in the original permit filed. Phase One of the development is valued at $1.4 billion and is expected to be operational during Q1 of fiscal 2013. Phase One includes a rock crusher, pelletizer plant, tailings basin and the reopening of an open-pit taconite mine.
Once that is complete, Essar is planning to invest another $800 million in Phase Two of the project, which will include a direct reduced iron (DRI) plant, an electric-arc furnace and a slabcaster--to be finished in 2015. The increase on the permit means that additional equipment will be needed, including another rock crusher, a 70-metre extension of the pellet furnace, another concentrating line, larger storage areas and larger mining trucks. The goal of Essar Steel Algoma is to eventually have Essar Steel Minnesota become its prime iron ore supplier.