GRAND RAPIDS, Minn., Dec. 23, 2015 /PRNewswire/ -- Magnetation LLC ("Magnetation" or the "Company") announced today that its subsidiary Mag Pellet LLC has been authorized by the United States Bankruptcy Court for the District of Minnesota (the "Bankruptcy Court") to assume its long-term iron ore pellet offtake agreement with AK Steel Corporation ("AK Steel").
The Company sought Bankruptcy Court approval to assume the contract in October 2015. The Bankruptcy Court granted the Company's motion following a hearing on the matter earlier this month.
Magnetation is pleased with the Bankruptcy Court's ruling and is looking forward to continuing its focus on producing and shipping high-quality fluxed iron ore pellets. "This court decision is critical to Magnetation's success" said Larry Lehtinen, CEO of Magnetation. "With this behind us, we can continue forward with our goal of being the lowest cost iron ore pellet producer in North America."
Magnetation LLC recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns three iron ore concentrate plants located in Keewatin, MN, Bovey, MN and Grand Rapids, MN, and an iron ore pellet plant in Reynolds, IN. Additional information about the company is available at www.magnetation.com.
This press release contains statements that are forward-looking in nature and relate to our expectations, beliefs and intentions. All statements other than statements of historical fact are statements that could be deemed to be forward-looking, including but not limited to statements about the expected impact and timeframe of the Plant 1 idling and our ability to continue to fulfill customer needs. These statements are subject to risks, uncertainties and assumptions that could cause outcomes to differ from our expectations, including but not limited to continued depression or further decreases to iron ore prices, changes in demand for our products or steel, unforeseen operational difficulties with or costs relating to our plants or third-party suppliers, negotiations with collective bargaining units, and other factors described in the reports and information provided to our investors. We assume no obligation and do not intend to update any such forward-looking statements.
Media Contact: Matt Lehtinen
Phone: (414) 688-0682
SOURCE Magnetation LLC