U. S. Steel Signs Long-Term Iron Ore Sales Agreement With Algoma Steel
May 18 2020 - 08:30AM
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 www.ussteel.com.
CONTACTS :MediaJohn O. AmblerVice PresidentCorporate
CommunicationsT - (412) 433-2407E - joambler@uss.com |
Investors/AnalystsKevin LewisVice PresidentInvestor RelationsT -
(412) 433-6935E - klewis@uss.com |
US Steel (NYSE:X)
Historical Stock Chart
From Feb 2024 to Mar 2024
US Steel (NYSE:X)
Historical Stock Chart
From Mar 2023 to Mar 2024