It is learned that Essar Steel Minnesota will sell its iron ore pellets to ArcelorMittal USA from its new taconite plant in Minnesota which costs US$1.7 billion.
According to Essar’s press release, the 10-year deal likely will start next year when the new plant is finished later this year.
Essar will supply 3.5 million tons of standard and fluxed iron ore pellets annually to ArcelorMittal USA, which means half of the capacity of the new plant.
Although ArcelorMittal owns a taconite mine and plant in Virginia, USA, but it has big demand for raw material since it has several steelmaking facilities in the US.
