GRAND RAPIDS, Minn., Nov. 27, 2012 /PRNewswire/ -- Magnetation LLC (Magnetation) 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.
"With convenient access to major railways and highways, Reynolds is an outstanding location for the company's new pellet plant," said Larry Lehtinen, CEO of Magnetation. "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 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 $300-$350 million, with additional iron ore concentrate capacity to be constructed in Northern Minnesota requiring another estimated $120 million investment.
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. Currently, Magnetation LLC owns and operates two reclamation plants located in Keewatin, MN and Taconite, MN. Magnetation LLC expects to construct a three million metric tonne per year iron ore pellet plant in Reynolds, Indiana and two additional concentrate reclamation plants located northwest of Coleraine, MN and southeast of Calumet, MN. Additional information about the company is available at www.magnetation.com.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, infrastructure and manufacturing, construction and electrical power generation and distribution markets. The company employs about 6,200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its corporate headquarters in West Chester, Ohio. AK Steel also owns 49.9% of Magnetation LLC, a joint venture headquartered in Grand Rapids, Minnesota, which produces iron ore concentrate from previously mined ore reserves. Additional information about AK Steel is available on the company's web site at www.aksteel.com.
SOURCE Magnetation LLC