Essar Steel Minnesota LLC signs a landmark Iron Ore Pellet Off Take Agreement with ArcelorMittal USA
HIBBING, MN, Feb. 11, 2013 /PRNewswire/ – Essar Steel Minnesota LLC (“ESML” or
the “Company”) is pleased to announce that it has entered into a long
term iron ore pellet off-take agreement with ArcelorMittal USA
(“AMUSA”). The term of the agreement is ten years and the supply of
pellets is expected to commence during the second half of ESML’s fiscal
year ending March 31, 2014.
As per the agreement, ESML will supply 3.5 million metric tonnes of
standard and fluxed iron ore pellets annually to ArcelorMittal’s North
American operations.
ESML has approximately 2.0 billion metric tonnes of measured, indicated
and inferred magnetite resources, out of which approximately 1.7
billion metric tonnes are proven and probable reserves. Furthermore,
the Company also has about 290 million metric tonnes of hematite
resources. ESML is presently constructing a 7.0 million metric tonnes
per annum iron ore pellet plant at Nashwauk in Northern Minnesota, at
an investment of US$ 1.7 billion.
Madhu Vuppuluri, President and Chief Executive Officer of ESML said:
“This off-take agreement demonstrates the marketability of ESML’s high
quality products to third parties in addition to Essar Steel Algoma.”
He further added that ESML’s diverse product portfolio will include
standard, flux and DR grade pellets, and ESML will be the only producer
capable of producing all three types of pellets in Unites States.
John Brett, Executive Vice President for Finance, Planning and
Procurement of ArcelorMittal, USA, said: “We are pleased to enter into
this long term off take agreement with ESML. This off-take agreement is
consistent with our strategy of securing long term supply of critical
raw materials within the region, and it provides material that meets
the stringent standards of our blast furnaces. ESML’s ability to
provide different types of pellets provides us the flexibility to
utilize the product at multiple furnaces. ”
About Essar Steel Minnesota
Essar Steel Minnesota LLC is a private resources company engaged in the
development and mining of iron ore. ESML’s iron ore operations are
located in the western end of the Mesabi Iron Range in Minnesota,
strategically close to critical infrastructure, including rail, port,
and surface connectivity systems. The Company is engaged in the
construction of a mine, concentrator and a 7.0 million metric tonnes
per annum iron ore pellet plant. The Company has access to significant
magnetite resources which are National Instrument (“NI”) 43-101
compliant, with approximately 1.8 billion metric tonnes of measured and
indicated resources, out of which approximately 1.7 billion metric
tonnes are proven and probable reserves, and an additional 200 million
metric tonnes of inferred resources. In addition the Company also has
about 290 million metric tonnes of hematite resources. Essar Steel
Minnesota LLC is part of the Essar Group.
For more information about Essar Steel Minnesota, please visit: www.essarsteelmn.com
About Essar Group
The Essar Group is a multinational conglomerate and a leading player in
the sectors of steel, oil and gas, power, BPO and telecom services,
shipping, ports and projects and resources. With operations in more
than 25 countries across five continents, the Essar Group employs over
75,000 people, with annual revenues of US$27 billion.
About ArcelorMittal
ArcelorMittal is the world’s leading integrated steel and mining
company, with a presence in more than 60 countries.
ArcelorMittal is the leader in all major global steel markets, including
automotive, construction, household
appliances and packaging, with leading R&D and technology, as well as
sizeable captive supplies of raw materials and outstanding distribution
networks. With an industrial presence in over 20 countries spanning
four continents, ArcelorMittal covers all of the key steel markets,
from emerging to mature.
Through its core values of sustainability, quality and leadership,
ArcelorMittal commits to operating in a responsible way with respect to
the health, safety and well-being of its employees, contractors and the
communities in which it operates. It is also committed to the
sustainable management of the environment. It takes a leading role in
the industry’s efforts to develop breakthrough steelmaking technologies
and is actively researching and developing steel-based technologies and
solutions that contribute to combat climate change.
In 2012, ArcelorMittal had revenues of $84.2 billion and crude steel
production of 88.2 million tonnes, representing approximately 6 percent
of world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock
exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal, please visit: www.arcelormittal.com.
SOURCE Essar Steel Minnesota LLC
