During an April 27 earnings call for Cliffs Natural Resources, CEO and president Lourenco Goncalves informed investors of the company’s plan to expand its product offering to DRI.
The planned DRI facility is slated for constructions in 2018 and will have the capacity to produce 1.5 million tons annually. The 2 million tons of feedstock for DRI production will come from its own direct-reduced grade pellets North Shore Mining Operations in Minnesota. The exact location for the DRI plant site is yet to be announced, but the site selection is expected to optimize the transportation of the feedstock pellets, Great Lakes transportation options, and the location of customers.
The planned expansion fits into the company’s strategic growth plan to further capitalize on the growing potential of electric arc furnace (EAF) steel production in North America and become a supplier of DR-grade pellets, pig iron and other alternative iron units such as HBI and DRI.