Magnetation LLC announces site of iron ore pellet plant — IndianaMagnetation LLC (Magnetation) announced Tuesday that it has selected Reynolds, Ind. as the site to build its new iron ore pellet plant. The move quashes hopes that the plant would be built in Superior.
Magnetation LLC (Magnetation) announced Tuesday that it has selected Reynolds, Ind. as the site to build its new iron ore pellet plant. The move quashes hopes that the plant would be built in Superior. The Parkland Industrial Park had been one of the sites under considered for the plant, which was expected to create 100 to 150 jobs in the region.
The new facility will produce high-quality iron ore pellets, a critical raw material in the steelmaking process, according to a Magnetation press release. The company currently anticipates breaking ground during the first quarter of 2013. The plant is expected to become operational in late 2014 or early 2015 and employ approximately 100-120 people.
Magnetation will transport iron ore concentrate from its mineral recovery operations in Northern Minnesota to its new plant in Reynolds. The concentrate will be converted into high-quality iron ore pellets for use by AK Steel Corporation. Magnetation expects that the pellet plant itself will require a capital investment of approximately $300-$350 million, with additional iron ore concentrate capacity to be constructed in Northern Minnesota requiring another estimated $120 million investment.