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Northern Iron Corp., Danieli Sign Cooperation Agreement; Contemplate DR Plant in Canada
05/16/2014 - Northern Iron Corp. announced the signing of a cooperation agreement with DANIELI & C. Officine Meccaniche S.p.A. of Buttrio (Udine), Italy (Danieli).
Under the cooperation agreement Northern and Danieli agree to cooperate on redeveloping the past producing Griffith Iron Ore Mine in northwest Ontario, Canada. Although no feasibility study has been completed, the scope of the agreement contemplates the installation of a fully integrated operation to produce hot briquetted iron (HBI) comprising a concentration plant, pelletizing plant, an Energiron direct reduction plant, briquetting plant and related auxiliary systems.
DANIELI will be Northern's technological partner for marketing and promoting the project to possible strategic partners, financiers and final product off-takers that can provide the necessary funding to cover the expenses up to and including a bankable feasibility study (BFS) for the Griffith and Karas projects. In addition, Danieli will provide technical data and support for the completion of the BFS.
Basil Botha, president and CEO of Northern said; "By completing this agreement we have aligned ourselves with one of the world's leading direct reduction technology providers and plant equipment suppliers to the steel industry. Danieli's "take or pay" off-take commitment is a huge vote of confidence in the quality of product that was produced historically prior to mine closure in 1986. Overall, the agreement with Danieli is a strong commitment that they believe in the potential of the past producing Griffith mine."
"Moreover, Danieli has undertaken to introduce Northern to their client base of steel mills around the world who are already investigating DRI and HBI plants with the intent of securing a large steel manufacturer as a strategic partner. Steel mills, the world over, are interested in direct ownership of raw material production as a way of keeping raw material costs under control and ensuring security of supply."
"In addition, Danieli will provide Northern with market know how along with technical data and specifications, at its own cost, until the completion of the bankable feasibility study, potentially saving Northern millions of dollars in consulting fees."
With 2013 revenues in excess of €2.7 billion, 11,000 employees and €140 million in R&D investment, DANIELI is one of the world's top three manufacturers and suppliers of iron making, direct reduction and steel making plant and equipment. Danieli's product line covers the whole technology spectrum from iron ore processing to flat and long steel finished product processing.
Danieli plays the role of main contractor within the Energiron alliance with Tenova. Energiron is the innovative gas-based direct reduction technology jointly developed by Tenova and Danieli that provides an extremely productive and flexible process, combined with high energy efficiency and the lowest environmental impact.
DANIELI will be Northern's technological partner for marketing and promoting the project to possible strategic partners, financiers and final product off-takers that can provide the necessary funding to cover the expenses up to and including a bankable feasibility study (BFS) for the Griffith and Karas projects. In addition, Danieli will provide technical data and support for the completion of the BFS.
Basil Botha, president and CEO of Northern said; "By completing this agreement we have aligned ourselves with one of the world's leading direct reduction technology providers and plant equipment suppliers to the steel industry. Danieli's "take or pay" off-take commitment is a huge vote of confidence in the quality of product that was produced historically prior to mine closure in 1986. Overall, the agreement with Danieli is a strong commitment that they believe in the potential of the past producing Griffith mine."
"Moreover, Danieli has undertaken to introduce Northern to their client base of steel mills around the world who are already investigating DRI and HBI plants with the intent of securing a large steel manufacturer as a strategic partner. Steel mills, the world over, are interested in direct ownership of raw material production as a way of keeping raw material costs under control and ensuring security of supply."
"In addition, Danieli will provide Northern with market know how along with technical data and specifications, at its own cost, until the completion of the bankable feasibility study, potentially saving Northern millions of dollars in consulting fees."
With 2013 revenues in excess of €2.7 billion, 11,000 employees and €140 million in R&D investment, DANIELI is one of the world's top three manufacturers and suppliers of iron making, direct reduction and steel making plant and equipment. Danieli's product line covers the whole technology spectrum from iron ore processing to flat and long steel finished product processing.
Danieli plays the role of main contractor within the Energiron alliance with Tenova. Energiron is the innovative gas-based direct reduction technology jointly developed by Tenova and Danieli that provides an extremely productive and flexible process, combined with high energy efficiency and the lowest environmental impact.
