Real-time Stock quotes, portfolio, LIVE TV and more.
Feb 13, 2013, 05.36 PM IST
Essar Steel today said its US subsidiary, Essar Steel Minnesota LLC (ESML), has entered into a 10-year agreement with ArcelorMittal USA for annual supply of 3.5 million tonnes (MT) of iron ore pellets.
As per the agreement, Essar will supply standard and fluxed iron ore pellets to ArcelorMittal's North American operations and the supplies are expected to begin during the second half of 2013-14, ESML said in a statement.
However, the company did not disclose any financial details of the deal."This off-take agreement demonstrates the marketability of ESML's high quality products to third parties in addition to Essar Steel Algoma, Canada," ESML President and Chief Executive Officer Madhu Vuppuluri said.
He added that ESML's diverse product portfolio includes standard, flux and DR grade iron ore pellets and the company "will be the only producer capable of producing all three types of pellets in Unites States".
Commenting on the agreement, ArcelorMittal, USA's Executive Vice President for Finance, Planning and Procurement John Brett said: "This off-take agreement is consistent with our strategy of securing long term supply of critical raw materials within the region, and it provides material that meets the stringent standards of our blast furnaces".
Essar Steel Minnesota LLC has about 2 billion tonnes of measured, indicated and inferred magnetite resources located in the western end of the Mesabi Iron Range in Minnesota. Of this, about 1.7 billion tonnes are proven and probable reserves.
The company also has about 290 MT of hematite resources. It is presently constructing a 7 MT per annum iron ore pellet plant at Nashwauk in Northern Minnesota, at an investment of USD 1.7 billion.
Tags: Essar Steel, US subsidiary, Essar Steel Minnesota LLC (ESML), ArcelorMittal USA , standard and fluxed , Madhu Vuppuluri , John Brett , Nashwauk , Northern Minnesota,
May 20 2013, 23:30
- in World News
May 20 2013, 12:21
- in Commodities