Essar Steel Minnesota, ArcelorMittal USA Announce Iron Ore Pellet Deal
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 (NYSE: MT). 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.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.