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Essar Steel Minnesota Announces Mineral Reserves and Resources Estimates
01/05/2012 - Essar Steel Minnesota has received the results of its National Instrument (NI) 43-101 Mineral Resources and Mineral Reserves Report prepared by Met-Chem Canada Inc. in connection with its Minnesota iron ore project.
Essar Steel Minnesota LLC (ESML) has received the results of its National Instrument (NI) 43-101 Mineral Resources and Mineral Reserves Report prepared by Met-Chem Canada Inc. in connection with its Minnesota iron ore project. In the technical report, measured and indicated resources for the project are estimated to be 1.77 billion tonnes, with a grading of 31.78% total iron, making it a leading iron ore resource party in the North American Basin. Inferred mineral reserves and resources are estimated at 201 million tonnes.
"The measured, indicated, and inferred resources of nearly 2 billion metric tons at Essar Steel Minnesota’s iron ore project exceeded our expectations,” said Madhu Vuppuluri, President and CEO of Essar Steel Minnesota. “We are also pleased to learn that 95% of total measured and indicated resources are made up of mineral reserves. We believe that our project contains sufficient reserves and resources not only to increase the planned production of iron ore pellets from 4.1 million metric tons to 7 million metric tons annually, but also will enable us to evaluate options to further utilize our increased mineral resources.”
ESML’s project is a taconite iron ore project located at Nashwauk, Minn., in the western part of the Mesabi Range, approximately 20 mi (32 km) east of Grand Rapids and 106 mi (170 km) from Duluth. The project permit area encompasses approximately 19,200 acres. All permits for the construction and production of 4.1 million tonnes of iron ore pellets annually have been received.
Applications have been filed for a second-phase expansion to add an additional 2.9 million tonnes of iron ore pellets production annually. Phase-one construction of the iron ore mine, crushing facilities, concentrator, and pellet plant commenced in October 2010.
Essar Steel Minnesota LLC is a private resources company engaged in the development and mining of iron ore. Its iron ore operations are located in the western end of the Mesabi Iron Range in Minnesota. The company is in the process of evaluating iron ore and steel markets and weighing options to further utilize its increased mineral resources.
Essar Steel Minnesota is part of the Essar Group, which is a multinational conglomerate and a leading player in the sectors of steel, oil and gas, power, BPO and telecom services, shipping, ports and projects and resources. With operations in more than 25 countries across five continents, the Essar Group employs over 75,000 people, with annual revenues of US$17 billion.
Met-Chem is an international consulting engineering firm established in 1969 to provide all phases of geology, mining, mineral processing, and engineering services throughout the world. From its headquarters in Montreal, Met-Chem offers the mining industry professional expertise that covers scoping, pre-feasibility and feasibility studies, basic and detailed engineering, procurement and construction management, training, start-up, commissioning, and operations assistance.
