According to Samarco chief executive officer Rodrigo Vilela, the agreement is reflective of the upward demand trajectory for iron ore pellets, and especially direct reduction pellets. 

“The initiatives and actions taken to reduce CO₂ emissions are a global reality, and Samarco has all the attributes to become a strategic supplier in terms of decarbonization and will accomplish this through joint developments with strategic customers such as Nucor,” he said. 

Vilela also said the agreement coincides with the return of Samarco’s third pelletizing plant, currently set to enter service in January 2025, when Samarco will almost double its production from current 9 million tons of pellets per year into 16.5 million tons of pellets per year.