http://www.northernironcorp.com/#!Northern-Iron-Corp-seeks-partner-to-develop-DRI-project-in-Canada/c12nf/55aea5ca0cf24f011b63c494
Northern Iron Corp seeks partner to develop DRI project in Canada
July 21, 2015
Canada-based Northern Iron Corp is looking for a strategic partner to develop a direct reduction iron (DRI) project in the city of Dryden, in the country’s east-central Ontario province.
"We aim to find a US steel mill interested in securing [DRI] supply," corporate development vp Michael Hepworth told Steel First.
The company intends to develop a 1.5 million-tpy DRI operation in Canada, but a detailed project will be designed only after the conclusion of a pre-feasibility study, expected next year.
Completion of this study depends on funding, however.
Northern Iron Corp will use the Griffith mine’s iron ore reserves, estimated at 125 million tonnes, to feed the DRI plant. The mine, also located in Dryden, was operated by a local firm from 1968 to 1986.
With the project, the company aims to benefit from the growing demand for DRI in the US market.
About 60% of the steel in the USA is currently produced via electric arc furnaces (EAF), according to Northern Iron Corp.
"Prime scrap [material] is scarce and the quality of other scrap types is declining, however," Hepworth said. "And EAFs can’t use iron ore, only metallics [such as DRI]."
The reduced volumes of hot briquetted iron (HBI) produced by Venezuelan firms could also boost demand for Northern Iron Corp’s DRI output, he said.
Besides targeting the US market, the company has already signed a take-or-pay offtake agreement with Italy-based Danieli Centro Metallics.
Under the deal, it will supply 500,000 tpy of DRI to the European firm.
Danieli Centro Metallics is a global technology provider, in sectors from iron ore processing up to DRI production, including EAF feed.
Meanwhile, Northern Iron Corp is betting on its proximity to the US steel industry and easy access to Asian and European markets to foster the development of the DRI project in Canada.
From Dryden, the DRI would be transported by rail to the existing Canadian ports of Thunder Bay and Prince Rupert for export.
"We would have to buy shipping capacities at these terminals [to export]," Hepworth said.
The miner would also take advantage of cheap and regular long-term access to clean natural gas in the region, which would reduce its energy costs by 10%.
A natural gas line already exists at Northern Iron Corp’s mining property, according to the company.
Northern Iron Corp is not connected to the similarly named Australian mining company, Northern Iron.
Source: http://www.steelfirst.com/ |
