United States Steel Corporation announced today it plans to break ground in Fall 2022 at one of its two Minnesota Ore Operations facilities, Keetac or Minntac, to construct a system dedicated to producing DR-grade pellets.
In a press release, the company said this will enable one of its existing pelletizing plants to not only create DR-grade pellets but also maintain the optionality to continue producing blast furnace-grade pellets.
The company said the new system will help it expand its low-cost iron ore competitive advantage and increase its self-sufficiency by supplying domestic feedstock to its growing fleet of electric arc furnaces (EAFs). The company said it expects related improvements to its capital and carbon intensity and financial performance from anticipated future internal and external EAF demand.
The company said it does not expect the approximately $150 million DR-grade pellet investment to change the 2022 capital spending budget and will continue to prudently manage future capex in-line with its strategic priorities.