Kobe Steel, Steel Dynamics to Build First ITmk3 Plant in Minnesota

Kobe Steel announced on Wednesday the firm and Steel Dynamics of USA agreed to build first commercial plant to use ITmk3 iron making process in Hoyt Lakes, Minnesota. The joint venture, Mesabi Nugget Delaware builds iron nugget making plant with annual 500,000 tonnes of output capacity for US$ 235 million starting operation in mid-2009.ITmk3, which is Kobe Steel’s technology to make iron nugget with 96-97% Fe by using fine iron ore and thermal coal, is proved test operation through July 2004. Kobe Steel and Steel Dynamics singed joint venture agreement on Tuesday. Mesabi Nugget Delaware, in which Steel Dynamics invests US$ 85 million and Kobe Steel invests US$ 20 million, operates the plant. Kobe Steel licenses ITmk3 process to the joint venture. World demand of cold steel source including iron nugget, direct reduced iron and ferrous scrap is estimated to be around 439 million tonnes in 2006. The demand is expected to grow to more than 500 million tonnes in 2010 and to 600 million tonnes in 2015. Kobe Steel tries to appeal the commercialization of the next generation iron making process. The firm is preparing the second plant through joint venture with Cleveland-Cliffs. The firm is also in study in India and Ukraine.