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Kobe Steel Reports Project Status of Mesabi Nugget ITmk3 Plant

During recent operations,

Mesabi Nugget is a joint venture between Steel Dynamics, Inc. and Kobe Steel, Ltd.
Mesabi Nugget, the world's first commercial plant using the ITmk3® Process, has reached 80% nugget productivity and plant availability has improved to 85%.

 
The plant, which is located at Hoyt Lakes in Northern Minnesota, has been increasing its output in accordance with a planned equipment and process optimization program that has been underway since the start of iron nugget production on January 12, 2010.
 
According to the Mesabi Nugget partners, productivity and plant availability figures that have been achieved to date have confirmed that the process works well. However, several mechanical issues have resulted in a slower-than-desired ramp-up of the nugget production rate. The major reason for the present intermittent operation and low plant output has been the coal conveyor system. The partners recently installed a new conveyor system has been installed, and are confident this will solve the conveyor issues.
 
It is anticipated the plant will reach its annualized rated capacity of 500,000 tonnes in the latter half of the year.
 
To date, iron nugget quality has been very good, with total iron content that has been consistently higher than what is typical for pig iron. All products are being used successfully in Steel Dynamics’ Indiana meltshops with “outstanding” melting characteristics.
 
Regarding operational parameters such as unit consumption ratio of raw material and utilities, evaluation of results to date have led the partners to conclude that target consumption figures will be achieved when the plant reaches full capacity.
 
Based on the plant operation to date and the improvements underway, Kobe Steel is confident that Mesabi Nugget will achieve the desired results and demonstrate the capability of the ITmk3 Process to provide an economical source of high quality iron.