(NNCNOW.com) --- Essar Steel Minnesota has announced ArcelorMittal will buy the iron ore pellets made at its site in Nashwauk.
Essar will supply 3.5 million tons of pellets each year to ArcelorMittal the world's leading integrated steel and mining company.
The agreement is for 10 years and will begin later this year.
“This off-take agreement demonstrates the marketability of ESML’s high quality products to third parties in addition to Essar Steel Algoma," Madhu Vuppuluri, President and Chief Executive Officer of ESML said.
"ESML’s diverse product portfolio will include standard, flux and DR grade pellets, and ESML will be the only producer capable of producing all three types of pellets in Unites States," he said.
“We are pleased to enter into this long term off take agreement with ESML. This off-take agreement is consistent with our strategy of securing long term supply of critical raw materials within the region, and it provides material that meets the stringent standards of our blast furnaces," John Brett, Executive Vice President for Finance, Planning and Procurement of ArcelorMittal, USA, said.
"ESML’s ability to provide different types of pellets provides us the flexibility to utilize the product at multiple furnaces,” he said.
Essar Steel is currently permitted to produce 4.1 million tons of pellets per year.
Additionally, the company has received all the permits necessary to increase productivity to 7 million tons per year.