MagIron's Feasibility Study: Promising Economics for Plant Restart

CoTec Holdings Corp. announced that MagIron LLC has completed a Definitive Feasibility Study for its Plant 4 in Minnesota and Reynolds Pellet Plant in Indiana. The study suggests a strong economic case for the restart. Highlights include a post-tax NPV of approximately $1.598 billion, an internal rate of return of 27.60%, and a payback period of about 3 years and 7 months.

The project's mine life is estimated at 32 years, with up-front capital costs of $435 million. Expected annual production is 2.6 million tonnes of DR-grade pellets. These findings position MagIron to serve the U.S. electric arc furnace steel market effectively.

MagIron aims to begin refurbishment in mid-2026, with a final investment decision sought earlier that year. CoTec, holding a 17% stake in MagIron, values its interest at about $272 million, affirming its strategic investment decisions.