Outokumpu Technology recently signed a contract with LKAB, a leading Swedish iron ore mining company and pellet producer, to design and deliver a new pelletizing plant for LKAB’s Malmberget project in Northern Sweden. The contract value exceeds EUR 60 million.

Outokumpu’s scope of delivery consists of engineering, procurement, construction and commissioning of the new plant, which will be based on Lurgi Traveling Grate technology. The plant is designed to produce 2.5 million tonnes per year of iron pellets during the start-up phase, with the ability to increase capacity with only minor modifications. Plant commissioning is scheduled for December 2006.

This is Outokumpu’s second pelletizing plant delivery to this same customer. The former Lurgi Metallurgie, acquired by Outokumpu in 2001, built the first traveling grate pelletizing plant for LKAB in Malmberget in 1971.

Outokumpu Technology and LKAB have a successful technology partnership with development and marketing of another innovative agglomeration process, the Steel Belt Sintering (SBS), originally invented by LKAB in Malmberget for pelletizing smaller quantities of iron ore fines. The process was later successfully applied by Outokumpu Technology for agglomeration of chrome and niobium ores worldwide.