U. S. Steel Signs Long-Term Iron Ore Sales Agreement With Algoma Steel
PITTSBURGH, May 18, 2020 (GLOBE NEWSWIRE) -- United States Steel Corporation (NYSE: X) (the "Company" or "U. S. Steel") today announced a four-year agreement to sell substantial volumes of quality iron ore pellets to Ontario, Canada based Algoma Steel Inc. (“Algoma”). The purchase agreement, which runs from 2021 through 2024, provides incremental volume and a new long-term iron ore customer for U. S. Steel’s Minnesota mines.
“As a top North American iron ore producer, U. S. Steel is pleased to partner with Algoma to ensure they have the substantial supply of iron ore pellets they need to run their business,” said U. S. Steel President and Chief Executive Officer David B. Burritt. “This new supply agreement further verifies the value of our iron ore operations. We are proud of Algoma’s confidence in U. S. Steel’s quality and reliability in satisfying their important long-term needs.”
This is the second significant iron ore purchase agreement U. S. Steel has finalized in 2020. The other agreement announced on April 30, 2020 included another party’s option to acquire a 25 percent interest in the Company’s Minntac iron ore operation for an implied enterprise value of $2.4 billion for the Minntac operation. The contracts advance U. S. Steel’s commitment to extract incremental value from the company’s iron ore assets as part the Company’s “best of both” strategy which was announced October 1, 2019.
“Today’s announcement is another example of the continued execution of our ‘best of both’ integrated and mini mill strategy. The asset revitalization investments we made across our critical steel making assets over the past few years are resulting in enhanced safety, quality, delivery and cost performance as we build on the cost and capability benefits of being an integrated producer,” said Burritt. “As we complete our electric arc furnace in Alabama and ultimately continue with our investments in endless casting and rolling at Mon Valley Works and the upgrades to the hot strip mill at Gary Works, we will have fundamentally repositioned our footprint to be the only ‘best of both’ steel producer for the multiple stakeholders that count on U. S. Steel. We look forward to continuing to serve current customers while gaining market share in strategic end markets, like we have done today with our newest iron ore customer.”
United States Steel Corporation, headquartered in Pittsburgh, Pa., is a leading integrated steel producer and Fortune 250 company with major operations in the United States and Central Europe. For more information about U. S. Steel, please visit .
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