Magnetation LLC announced today that it has selected Reynolds, Indiana as the site to build its new iron ore pellet plant.
The new facility will produce high-quality iron ore pellets, a critical raw material in the steelmaking process. Magnetation currently anticipates breaking ground during the first quarter of 2013.
The plant is expected to become operational in late 2014 or early 2015 and employ approximately 100-120 people.
Magnetation will transport iron ore concentrate from its mineral recovery operations in Northern Minnesota to its new plant in Reynolds. The concentrate will be converted into high quality iron ore pellets for use by AK Steel Corporation.
Magnetation expects that the pellet plant itself will require a capital investment of approximately USD 300 million to USD 350 million, with additional iron ore concentrate capacity to be constructed in Northern Minnesota requiring another estimated USD 120 million investment.
Mr Larry Lehtinen, CEO of Magnetation said "With convenient access to major railways and highways, Reynolds is an outstanding location for the company's new pellet plant. We thank our local and state officials in Indiana for their ongoing support of our company, and we look forward to joining the Reynolds community in the very near future."
Magnetation LLC is a joint venture between Magnetation Inc (50.1% owner) and AK Steel Corporation (49.9% owner). Magnetation LLC reclaims high quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins.
