7-MILLION TPA PELLET PROJECT Essar Steel Minnesota achieves financial closure
Essar Steel Minnesota LLC has achieved financial closure to complete the construction of its fully permitted open-pit iron ore mine, crushing, concentrating and pelletizing facilities in Minnesota, USA, which will have an annual pellet production capacity of 7 million tonnes, a company release said.
With this financing in place, ESML will ramp up procurement activities and construction activities at the project site. In the next 30 to 60 days, construction activities at the ESML site will focus on completion of foundational and concrete work before the winter freeze-up.
ESML is anticipating extensive construction activities at the project site during the winter months with the focus on erecting steel for numerous structures, installation of sheeting on buildings, and the installation of numerous pieces of machinery and equipment in the facilities. The company anticipates starting production of taconite pellets in the second half of 2015.
ESML has already invested approximately $1 billion in the project to date.
Madhu Vuppuluri, President and CEO, Essar Steel Minnesota LLC, said: “This is a momentous occasion for our company and for the Iron Range as we now have in place the necessary financing to complete this historic project. By having completed the necessary financing for this project, we look forward to moving aggressively toward project completion and commencement of production.” Essar Group acquired the state-of-the-art open pit mine and greenfield pellet plant project located on the Mesabi Range in Minnesota, USA, in October 2007. The project involves the construction and commissioning of an iron ore pellet plant with a total production capacity of 7 million tpa of iron ore pellets. Initial commissioning to begin in Q2 2015. Full 7 million tpa production capacity to be achieved by Q1 2016. The project is located over approximately 19,000 acres of land, of which 4,360 acres are mineral lease land with completed infrastructure for iron ore operations and export. Environmental permits have been received for construction and operations of up to 7 million tpa capacity.
Madhu Vuppuluri, President and CEO, Essar Steel Minnesota LLC