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Steel Dynamics Starts Production of Mesabi Nuggets

01/14/2010 - Steel Dynamics produces its first batch of iron nuggets at its Mesabi Nugget facility at Hoyt Lakes, Minn., marking the world's first commercial production of nuggets using the ITmk3 process developed by Kobe Steel Ltd.

Steel Dynamics, Inc. produced its first batch of iron nuggets this week at its Mesabi Nugget facility at Hoyt Lakes, Minn.
 
The plant, which Steel Dynamics built in cooperation with Kobe Steel Ltd. of Japan, began commissioning in the fourth quarter of 2009, with all individual production systems operational by the end of December. The facility, which employs the ITmk3® process developed by Kobe Steel, represents the world's first commercial production of nuggets using the ITmk3 process.
 
In addition to licensing its ITmk3 technology for the Mesabi Nugget facility, Kobe Steel Ltd. also provided equipment and technical support. Steel Dynamics, with 81% ownership, is responsible for operation of the plant and expects to utilize a substantial portion of the plant's output as feedstock for SDI's electric-arc furnace minimills in Indiana. The start-up marks the completion of two years of construction.
 
"I salute all those who have worked so hard to bring this exciting project to fruition, including Kobe Steel and the State of Minnesota, as well as the Mesabi Nugget team led by Mark Millett, and numerous employees of Iron Dynamics, who have contributed engineering and operational expertise to the project," said Keith Busse, Chairman and CEO.
 
"We will now continue to ramp up nugget production, seeking to reach the anticipated capacity-rate of 500,000 tonnes per year by mid-year,” added Busse. “We expect to begin utilizing Mesabi nuggets at our Flat Roll mill during the first quarter.”