Mesabi Nugget Ironmaking Project
Steel Dynamics and Kobe Steel Ltd. have partnered to construct and operate at Hoyt Lakes, Minnesota, the world's first full-scale demonstration plant using the pioneering ITmk3® process developed by Kobe Steel. This process promises to be both environmentally friendly and energy efficient, reducing emissions by more than 40 percent compared to current processes and using 30 percent less energy than integrated steelmaking. This plant is expected to produce high volumes of 97-percent-pure iron nuggets very cost-effectively.
Trials at SDI's Butler, Indiana, Flat Roll mill using iron nuggets produced at a pilot plant have demonstrated the nuggets are very well suited for mini-mill steelmaking, exhibiting numerous operating benefits compared to the imported pig iron ingots traditionally used in EAF flat-roll steelmaking. In addition, the Mesabi nuggets are expected to be produced and delivered to the Steel Dynamics steel mills at very favorable cost.
Construction of the Mesabi Nugget facility began in 2007 and commissioning of the plant began in the fourth quarter of 2009. Annual production capacity is expected to reach 500,000 metric tons. Two or three additional plants similar to the first could be built on the site following successful demonstration of the first commercial module. Such additional modules would require environmental permitting for which we have not yet applied.
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