MagIron accelerates DR-grade pellet and pig iron ambitions

MagIron finalized its acquisition of the Reynolds Pellet Plant in Indiana on Dec. 31. It purchased the facility for an undisclosed amount from the receivership estate of Altos Hornos de Mexico. (Note AHMSA is currently going through bankruptcy proceedings, with the sale of its main steelmaking and mining assets in Mexico scheduled for later this month.)

The plant is a modern, straight-gate pelletizer with roughly $440 million in historical investment, according to MagIron. The Indiana facility previously ran at 2.2 million metric tons per year and was designed to reach 3.0 million mtpy with limited capital.

The facility has been kept in an electrified, restart-ready condition since 2016.

With this acquisition, MagIron now controls a fully integrated system – concentrator, rail loadout, and pelletizer – originally built for $660 million and carrying a replacement value exceeding $1.3 billion.

Pig iron ambitions

The Reynolds plant acquisition is central to MagIron’s plan to restart DR-grade pellet production and, longer term, develop a domestic pig iron operation. The company said it is working with Primetals Technologies on engineering and feasibility work for a downstream pig iron expansion.

“Acquiring the Reynolds Pellet Plant is a transformative step for MagIron,” said CEO Larry Lehtinen. Together with successful test work at the Natural Resources Research Institute, “We are well advanced in establishing an entirely domestic supply chain of high-quality, low-carbon ore based metallics for American steel production,” he added.

Feasibility study confirms restart economics

MagIron released the results of an independent, definitive feasibility study for the restart of the plant 4 concentrator in Minnesota and the Reynolds pellet plant in Indiana. It suggests capital costs of $435 million, including $190 million in leased equipment.

The study projects annual DR-grade pellet output to be 2.6 million metric tons, with a mine life of 32 years.

The study supports a rapid restart of the concentrator and pellet plant, the company said.

MagIron aims to reach a final investment decision early this year, with refurbishment starting mid-year, and commissioning in early 2027, pending financing.

New Minnesota leases

MagIron has also secured five new state iron ore mining leases in Itasca County, Minn. A 760-acre package grants rights to explore and mine hematite iron formation aligned with MagIron’s DR-grade upgrading process.

The leases add to the company’s existing stockpiles, tailings, private agreements, and state mineral rights, supporting a long-term feedstock plan for Plant 4.

Domestic supply chain for EAF steelmakers

MagIron’s restart strategy aligns with the US EAF sector’s growing need for high-purity ore-based metallics. Domestic DR-grade pellet supply remains limited. US pig iron imports remain high and concentrated.

If MagIron proceeds with its pig iron expansion, it would become the first fully integrated merchant pig iron producer in the country. The company believes the move would improve security for steelmakers and reduce exposure to volatile import markets.