United States Steel Corporation announced that it would expand its low-cost iron ore competitive advantage and increase its self-sufficiency by supplying domestic feedstock to its growing fleet of electric arc furnaces. The Company expects related improvements to its capital and carbon intensity and financial performance from anticipated future internal and external EAF demand. US Steel plans to break ground in Fall 2022 at one of its two Minnesota Ore Operations facilities, Keetac or Minntac, to construct a system dedicated to producing DR-grade pellets. This will enable one of the Company’s existing pelletizing plants to not only create DR-grade pellets but also maintain the optionality to continue producing blast furnace-grade pellets.The Company does not expect the approximately USD 150 million DR-grade pellet investment to change the 2022 capital spending budget and will continue to prudently manage future capex in-line with its strategic priorities.DR-grade pellets are a critical feedstock for ironmaking in a direct reduced iron or hot briquetted iron process that ultimately supplies EAF steelmaking. Upon completion, the Company would have the option to sell the new pellets to third-party DRI & HBI producers or use them to feed a potential future DRI or HBI facility of its own. The DR-grade pellets produced would be a new product line for US Steel. The investment and expected timeline are subject to state and local support and receipt of regulatory permitting.
United States Steel Corporation announced that it would expand its low-cost iron ore competitive advantage and increase its self-sufficiency by supplying domestic feedstock to its growing fleet of electric arc furnaces. The Company expects related improvements to its capital and carbon intensity and financial performance from anticipated future internal and external EAF demand. US Steel plans to break ground in Fall 2022 at one of its two Minnesota Ore Operations facilities, Keetac or Minntac, to construct a system dedicated to producing DR-grade pellets. This will enable one of the Company’s existing pelletizing plants to not only create DR-grade pellets but also maintain the optionality to continue producing blast furnace-grade pellets.The Company does not expect the approximately USD 150 million DR-grade pellet investment to change the 2022 capital spending budget and will continue to prudently manage future capex in-line with its strategic priorities.DR-grade pellets are a critical feedstock for ironmaking in a direct reduced iron or hot briquetted iron process that ultimately supplies EAF steelmaking. Upon completion, the Company would have the option to sell the new pellets to third-party DRI & HBI producers or use them to feed a potential future DRI or HBI facility of its own. The DR-grade pellets produced would be a new product line for US Steel. The investment and expected timeline are subject to state and local support and receipt of regulatory permitting.
