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ISG Buys HBI Raw Materials Facilities
RICHFIELD, Ohio -- International Steel Group Inc. has completed the purchase of substantially all of the assets of the Cliffs and Associates Limited Hot Briquetted Iron facility in Trinidad and Tobago for a purchase price of $8 million in cash, plus assumed liabilities, officials announced today. In addition, Cliffs and Associates may receive up to $10 million in future payments contingent upon production and shipments.HBI is a high-quality scrap substitute that can be used as an iron source in steelmaking operations. The facility has the capacity to produce approximately 500,000 metric tons annually. The HBI process uses natural gas to reduce iron ore fines and yields a low-cost scrap steel substitute that can be used in both electric arc furnace and traditional blast furnace steelmaking. HBI can also be used to increase the efficiency of blast furnaces and thereby reduce the use of coke.The Trinidad and Tobago HBI project began in the mid-1990s as a joint venture among Cleveland Cliffs, Lurgi Metallurgie (now known as Outokumpu Technology GmbH), and LTV Steel Corp., whose assets were purchased by ISG. Production began in 2000 but ceased a year later as a result of depressed global scrap iron and HBI prices, changes in the makeup of the joint venture, and other factors. Now that the purchase has been completed, ISG expects to begin HBI production at the facility during the fourth quarter."Consistent with our focus on developing our raw materials capabilities, we are committed to restarting and operating the HBI facility in Trinidad and Tobago as soon as possible," says Rodney B. Mott, ISG president and chief executive officer. "This facility is strategically located near natural gas reserves, which provide an inexpensive source of energy for the production of HBI."International Steel Group Inc. is one of the largest steel producers in North America. The company produces a variety of steel products including hot-rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, rail products and semi-finished shapes to serve the automotive, construction, pipe and tube, appliance, container and machinery markets. Visit International Steel Group Inc.: www.intlsteel.com"