Nucor, Samarco Announced Extension of Five-Year DRI Import Agreement

SEATTLE (Scrap Monster): Brazil-based mining giant Samarco announced that EAF steelmaker Nucor has extended an agreement to import direct reduced iron (DRI) pellets from South America to feed its electric arc furnaces for a period of five years.

The supply agreement fits with Nucor’s claims as “one of the first steelmakers in North America with net zero, science-based greenhouse gas (GHG) targets for 2050, which includes Scopes 1, 2 and 3 emissions. Samarco describes Nucor as the largest and most diversified producer of steel and steel products in North America.

ALSO READ:

Nucor Approved Investment in New Rebar Micro Mill

Nucor to Modernize its Steel Plate Mill in Tuscaloosa, Alabama

Commenting on the development, Rodrigo Vilela, CEO of Samarco noted that the demand for DRI pellets is expected to see notable surge, mainly driven by the industry’s decarbonisation drive, which aims to promote consumption of materials that deliver reduced emission of greenhouse gases during the production process. Samarco targets to achieve decarbonisation goals by engaging in joint developments with strategic partners such as Nucor, he added.

Vilela stated that the extension of the agreement comes in tandem with the restart of the company’s third pelletizing plant in Brazil, which is currently scheduled for January next year. The ramp up of the facility is expected to double Samarco’s pellet production from current 9 million tons per year to almost 16.5 million tonnes per year.