MSI enters $600 million deal with Italian and Mexican companies

Minnesota Steel Industries (MSI) announced Wednesday their $600 million deal to develop a fully integrated mining and steelmaking project near Nashwauk, MN with Italian and Mexican companies Danieli and HYL Technologies of Mexico. Italian firm Danieli and HYL Technologies of Mexico have agreed to be contractors for this complex that will consist of an iron ore mine, DRI (Direct Reduced Iron) facility and a steel plant. The Minnesota 2006 Legislature allocated about $12 million for this project in the bonding bill. MSI is confident to have investors in place by the end of this year. Danieli will be the supplier/contractor for the steel plant and its electric furnaces, slab casters (combined capacity of 1.65 million tons a year) and the hot rolling mills. HYL Technologies of Monterrey, Mexico will supply the equipment for the iron pellet - and DRI production. Construction will begin in early 2007 with hopes to be up and running by 2009 with up to 700 jobs created. Almost unique in the world, the proposed plant will process on site iron ore into DRI, then into slabs and flat rolled steel, all within in 36 hours.