On Thursday, U. S. Steel announced the launch and operational readiness of a direct reduced (DR)-grade pellet production facility at its Minnesota Ore Operations-Keetac Plant.
The company said the Keetac facility is on track to deliver an estimated four million tons of pellets annually, and has already confirmed its first shipment of DR-grade pellets. Construction on the facility started in August 2022 and was completed in December of last year. U. S. Steel’s Minnesota Ore Operations employs nearly 2,000 workers.
Officials said the $150 million investment is the latest step in U. S. Steel’s metallics strategy that will allow it to provide the DR-grade pellet market with low-cost iron ore. Officials said the investment also builds on the company’s ability to meet its customers’ needs.
“This project was completed ahead of time, under budget, and most importantly, safely. Plus, it created 250 construction jobs and 33 full-time union and management jobs,” said Burritt. “This is an incredible achievement for our team at Keetac and for U. S. Steel, as we continue to produce the highest quality products: mined, melted, and made right here in the USA.”
The new production facility will maintain the ability to produce either DR-grade iron ore pellets or blast furnace iron ore pellets, which will allow the company the opportunity to adjust to changing market conditions. Minnesota Gov. Tim Walz and other elected officials joined the company, including U. S. Steel President and CEO David B. Burritt, and John Gordon, Sr. V.P. of raw materials and sustainable resources, and members of the community in celebrating the facility’s launch.
“U. S. Steel’s new pellet facility is a smart investment in the people and potential of the Iron Range,” Walz said. “This project is a win-win. We’re creating jobs, lowering emissions, and ensuring Minnesota’s iron ore industry remains strong for generations.”