UK-headquartered Primetals Technologies has completed a concept and economic study for US-based MagIron that evaluates the development of large-scale granulated pig iron production to be integrated with MagIron’s existing facilities.

The study evaluated three alternative production routes: MIDREX Flex direct reduction followed by electric smelting; MIDREX Flex direct reduction followed by electric arc furnace and ladle furnace processing; and conventional blast-furnace production.

The study confirms that each route provides a technically credible pathway to produce about two-million tons of granulated pig iron a year. It also supports MagIron’s strategy to establish itself as a key supplier of high-quality iron units which will be critical to the future success and decarbonisation of the US steel industry.

MagIron executive chairperson Julian Treger says the completion of the Primetals study represents an important milestone for MagIron and confirms that there are several technically credible and economically attractive routes through which the company can establish large-scale domestic production of merchant pig iron.

"The US currently imports essentially all of the merchant pig iron required by its steel industry - about four-million to six-million tons a year. This creates a significant strategic vulnerability for a country whose automotive, defence, infrastructure, aerospace and advanced manufacturing industries all depend upon secure access to high-quality steel," Treger states.

MagIron expects to leverage its substantial existing mining, processing, pelletising and logistics infrastructure in Minnesota and Indiana. The company believes that initial commissioning and first hot metal could be achieved within two to three years following the final investment decision.

MagIron is uniquely positioned to supply both direct reduction-grade iron-ore pellets and merchant pig iron to the US steel industry. By producing a planned two-million tons of pig iron a year, MagIron can cater for one-third of current US demand.

The company intends to advance the development of domestic pig iron production while retaining the flexibility to produce and sell direct reduction-grade pellets where a strong and economically attractive commercial opportunity exists. This flexibility allows MagIron to respond to customer requirements and market conditions while using the same underlying resource base and existing processing and pelletising infrastructure.

Primetals iron and steelmaking senior VP Friedemann Plaul says the company is pleased to have executed this study for MagIron, evaluating three alternative technology routes for the production of granulated pig iron.

"The study demonstrates that large-scale granulated pig iron production can be achieved through several technically credible routes. MagIron’s existing industrial infrastructure and domestic raw-material base provide a strong foundation from which to advance the project into its next stage of development. Primetals is thrilled to embark on this partnership and support MagIron in achieving its goals," Plaul says.

For context, MagIron was established to support and accelerate the decarbonisation of the steel industry by becoming a key supplier of high-quality, low carbon iron units which will be critical for the future success and decarbonisation of the US steel industry.

The company is focused on the restart of an iron-ore concentrator located near Grand Rapids, Minnesota and a pelletising plant located near Reynolds, Indiana.

Both facilities are modern, past-producing plants benefiting from over $660-million of prior investment. The facilities have previously operated at an annualised run-rate of about 2.2-million tons a year of blast furnace-grade concentrate and were designed to expand to thee-million tons a year relatively quickly and at low capital intensity.