ArcelorMittal makes HBI move

Luxembourg-based steelmaker ArcelorMittal says it has signed an agreement to acquire an 80 percent share of Austria-based Voestalpine’s hot briquetted iron (HBI) plant in Corpus Christi, Texas. Voestalpine will retain the remaining 20 percent in a transaction where a $1 billion valuation has been placed on the Corpus Christi operation.

In parallel with the transaction, ArcelorMittal says it has signed a long-term offtake agreement with Voestalpine to supply an annual volume of HBI in part to that company’s steel mills in Austria. Adds ArcelorMittal, “The remaining balance of production will be delivered to third parties under existing supply contracts, and to ArcelorMittal facilities, including to AM/NS Calvert in Alabama, upon the commissioning of its 1.5 million-metric-ton electric arc furnace (EAF), expected [to start up] in the second half of 2023.”

The Corpus Christi plant was opened in October 2016 and is described by ArcelorMittal as one of the largest of its kind in the world. It has an annual capacity of 2 million metric tons of HBI. The steelmaker describes HBI as a “high-quality feedstock made through the direct reduction of iron ore which is used to produce high-quality steel grades in an EAF, but which can also be used in blast furnaces.” The materials often is added as a supplement or sometimes a substitute for ferrous scrap.

Comments ArcelorMittal CEO Aditya Mittal, “This is a compelling strategic acquisition for our company. It accelerates both our progression into producing high-quality metallic feedstock for EAFs and our global decarbonization journey. The facility is world-class and is ideally located, with its own deep-water port. There is also unused land on the site which provides interesting options for further development.”

Continues the CEO, “This acquisition will further strengthen our position and guarantee security of supply to AM/NS Calvert, while our experience will bring significant value to the asset.”

The Corpus Christi facility uses technology and equipment supplied by North Carolina-based Midrex Technologies Inc. It currently uses natural gas to directly reduce iron ore pellets into HBI with an iron content that exceeds 91 percent. The plant has the potential to transition to 100 percent hydrogen power, says ArcelorMittal.