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    May 11, 2021

    Cargill Invests in New Ukraine Iron Ore Plant

    Written by Sandy Williams

    Cargill Metals and Canadian mining company Black Iron are teaming up to create a new iron ore plant in the Ukraine. The May 10 agreement gives Cargill offtake rights to the first 4 million metric tons of ore produced per year for the next 10 years along with profit sharing. On the profit share, Black Iron will receive 100% of the 65% iron content fines benchmark price, currently ~$230 per MT, and share with Cargill a portion of the incremental sale price of its higher iron content and low impurity magnetite product. In return, Cargill will provide financing of $75 million for the plant, which will produce 68% iron content magnetite pellets.

    The higher iron content is expected to reduce steel-producing emissions by approximately 30% and put the proposed Ukraine plant among the top 4% of global production by iron content.

    Sandy Williams

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