MagIron Acquires Reynolds Pellet Plant and Launches U.S.-Based DR Grade Pellet and Merchant Pig Iron Strategy

GILBERT, Minn., Dec. 19, 2025 /PRNewswire/ -- MagIron LLC ("MagIron" or the "Company") today announced that it has entered into a binding Asset Purchase Agreement ("APA") to acquire an iron ore pelletizing plant located near Reynolds, Indiana (the "Reynolds Pellet Plant") from the Receivership Estate of Altos Hornos De Mexico, S.A.B De C.V. ("ASHMSA") (the "Acquisition"). The Acquisition is subject to the satisfaction of certain conditions precedent and is expected to close before December 31, 2025. The Acquisition is a significant milestone in MagIron's strategy to produce Direct Reduction ("DR") grade pellets and, over time, establish the U.S.'s first integrated merchant pig iron operation.

The Reynolds Pellet Plant is a modern straight grate, past-producing, restart-ready pelletizer benefiting from approximately $440 million of prior investment. The facility has previously operated at an annualized run-rate of approximately 2.2 million tonnes per annum ("mtpa") and was designed to expand to 3.0 mtpa with limited additional capital. The Reynolds Pellet Plant was previously integrated with MagIron's existing iron ore concentrating facility in Minnesota before being placed into care and maintenance in 2016. It has been kept in good condition, including a continuous state of electrification.

Following completion of the Acquisition, MagIron will own 100% of a portfolio of assets including an iron ore concentrator, a rail load out facility and a pelletizer which were all originally built at a total cost of approximately $660 million and have an estimated replacement value today of over $1.3 billion. These facilities are supported by access to over 2.6 billion tonnes of feedstock material which is sufficient to support over 250 years of operations.

These integrated facilities will allow MagIron to not only restart iron oxide pellet production relatively quickly, but also to pursue the development of the U.S.'s first integrated merchant pig iron producer. To advance this strategy, the Company is working with Primetals Technologies, a world leader in the fields of engineering and plant building, to assess the feasibility of a downstream expansion to produce granulated pig iron, which would position MagIron as the only merchant pig iron producer in the U.S. This new, entirely domestic supply chain will allow the U.S. to reduce its near total dependence on foreign imports of this critical material and also improve the quality of pig iron used given the lower levels of impurities compared to existing imports from Brazil. Establishing an onshore merchant pig iron producer is essential for the U.S. to secure the supply chains of strategically important industries including automotive, aerospace and defense.

Larry Lehtinen, CEO of MagIron said: "Acquiring the Reynolds Pellet Plant is a transformative step for MagIron. Together with our successful test work at the NRRI we are well advanced in establishing an entirely domestic supply chain of high-quality, low-carbon ore based metallics for American steel production. Supported by one of the largest and longest-life iron resources in North America, MagIron is positioned to be a dependable, long-term partner to the U.S. steelmaking industry – strengthening supply security, improving quality, reducing exposure to increasingly unreliable foreign markets, and supporting the transition to cleaner, low-carbon steelmaking."

Due Diligence Process

The Acquisition follows an extensive due diligence process, including technical, commercial, legal and environmental reviews from third-party consultants. This work included a review of historical production and cost data from when the facility was operating in 2016, which validated key assumptions underpinning the Company's restart plans, including capex requirements, operating costs, production volumes and the restart schedule.

MagIron Strategy

MagIron intends to reintegrate the Reynolds Pellet Plant with its existing iron ore concentrator and is in advanced discussions with third parties to finalize the logistics solutions for the joint operation of both facilities. Together with the test work completed by the Natural Resources Research Institute ("NRRI"), which indicated the potential to double historical iron recovery rates and achieve DR grade iron concentrate at our iron ore concentrator, the Acquisition is a significant milestone in the execution of MagIron's strategy to produce high quality, DR grade pellets initially and subsequently merchant pig iron.

Once back in production, these facilities are expected to create approximately 414 direct (full time) high-skill, high-paid jobs. In addition, approximately 250 jobs will be created during construction.

By producing DR grade pellets and merchant pig iron within the continental U.S., MagIron aims to establish a long-life domestic supply chain which will provide the U.S. steelmakers with secure and reliable access to high quality ore-based metallics thereby reducing dependence on imported raw materials.

The Company is working with third party consultants to finalize a feasibility study which is expected in the coming weeks. MagIron also remains engaged with multiple parties to finalize the funding package for the refurbishment and restart of the Company's assets.

Data Verification

Mr. Reinis Sipols, QP, from Behre Dolbear, has reviewed and approved the scientific and technical content contained in this news release.

A further update will be provided as and when appropriate.

MagIron, LLC.
Larry Lehtinen, CEO: +1 218-349-1277
Ed Jack, Audley Capital: +44 7478 686 062 / +46 705 586 062
www.magironusa.com

About MagIron

MagIron was established to support and accelerate the decarbonization of the steel industry by becoming a key supplier of high quality, low carbon iron units which will be critical for the future success and decarbonization of the US steel industry. The Company is focused on the restart of an iron ore concentrator located near Grand Rapids, Minnesota and a pelletizing plant located near Reynolds, Indiana. Both facilities are modern, past-producing plants benefiting from over $660 million of prior investment. The facilities have previously operated at an annualized run-rate of approximately 2.2 million tonnes per annum ("mtpa") of BF grade concentrate and was designed to expand to 3.0 mtpa relatively quickly and at low capital intensity. The iron ore concentrator was originally designed to process previously discarded waste materials from historical mining operations and convert such feed materials into high grade, low impurity iron ore concentrate. Given the significant historical mining operations across the Mesabi Iron Range in northern Minnesota, there are vast amounts of waste material and in-situ virgin oxidized iron formation in close proximity to MagIron's concentrator which are suitable as feedstock to support a multi-decade business plan.

Forward-Looking Information Cautionary Statement

Statements in this press release regarding the Company and its investments which are not historical facts are "forward-looking statements" which involve risks and uncertainties, including statements relating to the Company's potential completion of the acquisition of the Reynolds Pellet Plant, the Company' strategy, its other current and future assets, the results of technical and feasibility studies, expected production profiles, product quality, capital and operating costs, development timelines, permitting, financing, market conditions, potential future expansion or optionality, including the ability to produce additional production, and investments and management's expectations with respect to the benefits to the Company which may be implied from such statements.

Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements, due to known and unknown risks and uncertainties affecting the Company, including but not limited to resource and reserve risks; environmental risks and costs; labor costs and shortages; operating costs; uncertain demand and supply dynamics and price fluctuations in materials; increases in energy costs; labor disputes and work stoppages; leasing costs and the availability of equipment; heavy equipment demand and availability; contractor and subcontractor performance issues; worksite safety issues; project delays and cost overruns; extreme weather conditions; social and transport disruptions; risks related to the availability of financing, permitting and regulatory approvals; construction and commissioning performance; and other factors beyond the control of MagIron. The Company assumes no responsibility to update forward-looking statements in this press release except as required by law. Readers should not place undue reliance on the forward-looking statements and information contained in this news release and are encouraged to read the Company's continuous disclosure documents. Forward-looking statements speak only as of the date of this announcement, and MagIron does not undertake any obligation to update or revise such statements except as required by applicable law.

SOURCE MagIron LLC