U. S. Steel Proposes Capital Investment Program at Minnesota Ore Operations' Keetac Facility
PITTSBURGH, Feb. 1 /PRNewswire-FirstCall/ -- United States Steel Corporation (NYSE: X) announced today that it is developing a capital investment program in excess of $300 million for its Minnesota Ore Operations' Keetac facility in Keewatin, Minn. The program would increase production, enhance overall environmental performance, support the long-term viability of its Minnesota Ore Operations, and create 75 full-time and 500 temporary construction jobs. The program would take an estimated 36 months after the permitting process to complete and would modernize and improve a pellet production line that has been idle since 1980.
The restart would involve energy-efficient technologies in addition to new emission controls to exceed current environmental standards. The expansion would increase Keetac's iron pellet production output by 3.6 million tons to a total annual output of 9.6 million tons. Upgrades to the mining, concentrating and agglomerating processes would support the increased production requirements. The program includes the purchase of additional mining equipment and the installation of additional processing equipment.
U. S. Steel, working with agencies and the appropriate stakeholders, expects to file for environmental permits later this year.
"U. S. Steel's Minnesota Ore Operations have been providing iron-bearing pellets to our operations in the United States and Europe for many years. In 2007, we expanded our steelmaking operations into Canada, creating an opportunity to increase our production at Keetac in order to provide the same high-quality product to our Canadian operations," said U. S. Steel Chairman and CEO John Surma. "We look forward to working cooperatively with Gov. Tim Pawlenty, the federal, state and local elected officials representing the Iron Range, the United Steelworkers, the Building Trades in Minnesota, and other stakeholders involved in this important project."
Keetac produces six million tons of pellets annually. Minnesota Ore Operations is Minnesota's largest producer of iron ore pellets, the key ingredient used to make steel.
This release contains forward-looking statements concerning the restart of the existing line. The timing, cost and ultimate capability of the facilities are subject to, among others, the receipt of necessary government permits, terms of construction contracts, availability of necessary technology and materials, general economic conditions and the financial condition of U. S. Steel. In accordance with "safe harbor" provisions of the Private Securities Litigation Act of 1995, cautionary statements identifying important factors, but not necessarily all factors, that could cause actual results to differ materially from those set forth in the forward-looking statements have been included in the Form 10-K of U. S. Steel for the year ended Dec. 31, 2006, and in subsequent filings for U. S. Steel.
For more information about U. S. Steel, visit http://www.ussteel.com/.
SOURCE: United States Steel Corporation
CONTACT: Courtney Boone, +1-412-433-6791, or Erin DiPietro,
Web site: http://www.ussteel.com/
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