By Paul Ploumis 19 Aug 2015 Last updated at 07:09:04 GMT
SEATTLE (Scrap Monster): As per media reports, Indian Essar Steel has decided to ramp up construction of an abandoned iron ore deposit on the Mesabi iron range outside Hibbing, north-east Minnesota. The company expects the $1.9 billion pellet plant construction to be completed by second quarter next year. The facility is said to have capacity to produce 7 million tonnes of high-grade iron ore pellets per annum over mine life extending to 70-80 years.
The project is one of the largest greenfield construction projects in the region by capital expenditure. The development of the mine had been delayed several times due to financing issues. According to Essar Steel, it sees immense potential for mine operation in the forthcoming years, mainly on account of projected boom in US manufacturing, that will boost the demand for high-grade iron ore and domestically produced steel products.
Madhu Vuppuluri, Chief Executive of Essar Steel stated that the US and Canadian steel sector is poised to witness huge boom, backed by infrastructure growth in the region. However, it should be noted that the new investment comes at a time when major US iron and steel companies are resorting to production cuts and lockouts due to plunging iron ore prices and dumping of cheaper steel products from Asian countries.
Essar Steel noted that implementation of new workflow efficiencies and pollution extraction technologies could help them to produce iron ore pellets at lower costs with lesser environmental impacts. It also noted that the facility is adjacent to many steel making facilities in Chicago, Pittsburgh and Cleveland.
Essar Steel is a global producer of steel with a footprint in India, Canada, USA, the Middle East and Asia