Primetals Technologies has completed a concept and economic study for MagIron to assess the development of large-scale granulated pig iron production integrated with the company’s existing facilities in the United States. The study examined three possible production routes. These include MIDREX® Flex direct reduction followed by electric smelting, MIDREX® Flex direct reduction followed by electric arc furnace and ladle furnace processing, and conventional blast-furnace production.
According to the study, all three routes provide technically viable options for producing approximately two million metric tons of granulated pig iron per year. The findings support MagIron’s plans to become a major domestic supplier of high-quality iron units for the U.S. steel industry.
Julian Treger, Executive Chairman of MagIron, said, “The completion of the Primetals study is an important milestone for MagIron. It confirms that there are several technically sound and economically attractive ways to establish large-scale domestic production of merchant pig iron.” He added that the United States currently depends heavily on imports for merchant pig iron used by its steel industry. This creates supply concerns for industries such as automotive, defence, infrastructure, aerospace and advanced manufacturing.
MagIron plans to use its existing mining, processing, pelletizing and logistics infrastructure in Minnesota and Indiana to support the project. The company believes initial commissioning and first hot metal production could be achieved within two to three years after a final investment decision.
The company is also positioned to supply both DR-grade iron ore pellets and merchant pig iron. This gives MagIron the flexibility to respond to changing customer needs and market conditions while using the same resource base and existing infrastructure. The US steel industry has historically consumed between four million and six million metric tons of merchant pig iron annually. At a production level of around two million metric tons per year, MagIron could potentially meet between one-third and one-half of current domestic demand.
Friedemann Plaul, Senior Vice President Iron- and Steelmaking and ECO Solutions at Primetals Technologies, said the study demonstrates that large-scale granulated pig iron production can be developed through several viable technology routes. MagIron was established to support the future decarbonization of the steel industry through the supply of high-quality, low-carbon iron units. The company is focused on restarting an iron ore concentrator near Grand Rapids, Minnesota, and a pelletizing plant near Reynolds, Indiana. Both facilities are modern, previously operating plants that have benefited from more than $660 million in prior investment and provide a strong foundation for MagIron’s future growth plans.
