U.S. Steel is investing $150 million in direct reduced, or DR-grade, pellet capabilities at one of its mines in northern Minnesota.
The Pittsburgh-based steelmaker said the investment at its Minnesota Ore Operations Keetac plant will let it supply the increasingly tight DR-grade pellet market, expand its low-cost iron ore competitive advantage and give it the flexibility to feed a future direct reduced iron or hot briquetted iron facility. It’s a new product line for U.S. Steel that would help make its mini-mills more vertically integrated the way its integrated mills long have been.
“Our investment at Keetac is a commitment to the future of American steel,” said U. S. Steel President and CEO David Burritt. “As we look forward to celebrating National Manufacturing Day on Friday, I want to recognize the exceptional team working on this project and our employees for their dedication. When we do well, so do our employees and the communities where we live and work; the Iron Range remains a critical part of our future.”
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U.S. Steel recently broke ground on the project that will let it supply its fleet of electric arc furnaces. It’s expected to be operational late next year.
“I’m proud to celebrate U.S. Steel’s major investment in the Northland,” said Minnesota Gov. Tim Walz. “Minnesota’s steel industry is a critical part of our history, culture, and thriving economy — and a critical job creator on the Iron Range. I look forward to the growth this investment will bring to both our regional and statewide economies.”
While the production facility is expected to feed U.S. Steel’s mini-mills in Arkansas, it will be able to continue to produce blast furnace-grade pellets. U.S. Steel also could sell the pellets to third parties.
The first pellets are expected to be produced in 2024.
“Ensuring domestic production helps Minnesota and protects us against global supply chain challenges and geopolitical uncertainty,” said Doug Loon, President and CEO of the Minnesota Chamber of Commerce. “This project helps secure a bright future for mining in Minnesota.”
