Magnetation LLC completed a $100 million senior secured notes tack-on offering to finance the completion of its iron ore expansion projects ahead of schedule and increased production capacity of its new iron ore concentrate plant.
“We are very pleased with the execution on these projects by our Magnetation team members as well as our suppliers and stakeholders,” Larry Lehtinen, CEO, said in a company announcement. “We look forward to these projects coming online and sending our first shipment of pellets to our partner and customer AK Steel.”
Magnetation is currently in the final stages of construction for its Reynolds, Ind., iron ore pellet plant. The new facility, originally scheduled to start-up in the first half of 2015, will begin operating this August or September. It will employ more than 100 people and produce pellets to feed AK Steel’s blast furnaces in Middletown, Ohio, and Ashland, Ky.
The company also is in the process of constructing a new iron ore concentrate plant, Plant Four, near Grand Rapids, where production capacity has been increased from 1.6 million tons of concentrate per year to 2.0 million tons. The new facility is set to begin operating in the first quarter of 2015, two quarters ahead of schedule, and will employ more than 120 people.