Steel Dynamics and Kobe Steel are implementing a project for Itmk3 technology

Japanese Kobe Steel Company said that the first commercial project for the production of iron "nuggets” using direct reduction of iron technology of new Itmk3 generation will be launched in mid 2009.
According to preliminary data, the productivity of enterprises is estimated at 500 thousand tons per year. The plant will be located in Hoyt Lake (Minnesota, USA), with official cotract finally signed last month between Kobe Steel and American Steel Dynamics, Inc. (SDI). Negotiations to launch first commercial plant started in the end of 2004, but no final agreement between two companies until recently existed. Total investment in this project will be about 26 billion yen (235 million dollars).

Manufacturer of iron nuggets will be built and operated by a joint venture of Mesabi Nugget, whose tasks, in addition to production, will include distribution of the product. Mesabi Nugget is 81% owned by SDI, Kobe Steel controls the remaining 19%. Japanese company offers license to enterprise for the use of Itmk3 technology, engineering services, equipment and technical support. Kobe Steel expects that the commercial plant will provide in the future the necessary feedback (technical and operational data on the effectiveness of the process). SDI, in its turn, in order to ensure the project has acquired the assets of a nearby mine, as part of the Mesabi Iron Range field, and is planning to build GOK, where iron ore concentrate will be produced for subsequent supply to the plant as raw material.
Currently, Kobe Steel plans other commercial projects, including one in the United States, in Michigan.