US Steel opens DR production facility

Pittsburgh-based U.S. Steel Corp. has started up its direct reduced- (DR-) grade pellet production facility at its Minnesota Ore Operations-Keetac Plant.

The $150 million investment marks a step forward in U. S. Steel’s metallics strategy by supplying the increasingly tight DR-grade pellet market with low-cost iron ore.

The company says it has confirmed the first shipment of DR-grade pellets, with the Keetac facility being on track to deliver approximately 4 million tons of pellets annually.

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The new production facility will maintain optionality, able to produce either DR-grade iron ore pellets or blast furnace iron ore pellets, allowing U.S. Steel to adjust to changing market conditions.

Construction on the DR-grade pellet facility began in August of 2022 and was completed in December of last year. U.S. Steel’s Minnesota Ore Operations directly employs nearly 2,000 workers.

Minnesota Gov. Tim Walz and other elected officials joined the celebration, along with U.S. Steel President and CEO David B. Burritt, Senior Vice President - Raw Materials and Sustainable Resources John Gordon, employees and members of the community.

“This project was completed ahead of time, under budget and most importantly, safely,” Burritt said. “Plus, it created 250 construction jobs and 33 full-time union and management jobs. 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.”

“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.”