Canada
May 1, 2020
Stelco a Step Closer to Vertical Integration with Minntac Share Purchase
Written by Sandy Williams
Canadian steel mill Stelco has entered into a new eight-year pellet sale and purchase agreement with U.S. Steel. The eight-year contract runs until Jan. 31, 2028, and will provide 100 percent of Stelco’s iron ore pellet requirements at Lake Erie Works including volume required to support the expansion in production projected after the upcoming blast furnace upgrade project.
Stelco also entered into an option agreement to purchase a 25 percent share of the Minntac iron ore operations. The company will pay U.S. Steel $100 million in 2020 and will have until Jan. 31, 2027, to exercise its option to purchase the share for another $500 million.
