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MagIron Feasibility Study: A New Era in Iron Production

On January 14, 2026, MagIron LLC proudly announced the successful completion of an independent Definitive Feasibility Study (DFS) which examines the company's strategy for restarting its iron ore production facilities in Minnesota and Indiana. The study, carried out by well-regarded consulting firm Behre Dolbear Company (USA), Inc., showcases compelling economic forecasts and a strategic path for rapid project initiation.

Key Economic Highlights

The DFS reveals a robust financial outlook for MagIron, demonstrating a base case after-tax Net Present Value (NPV) at an impressive 8% rate of $1,598 million alongside an Internal Rate of Return (IRR) of 27.60%. Notably, the predicted payback period for the investments is just 3 years and 7 months, marking a promising financial viability that could appeal to investors. Additionally, the mine's projected lifespan extends to 32 years, during which MagIron anticipates producing an average of 2.6 million tonnes of Direct Reduced (DR) grade pellets annually, culminating in a total output of 84 million tonnes throughout its operational lifespan.

Total capital costs of approximately $435 million have been outlined, with around $190 million allocated specifically for mining and rail equipment expected to be leased. The forecasted life of mine total cash costs is set at $92.42 per dry metric tonne, ensuring competitive production capacity within the market.

Evergreen Demand for Steel

MagIron’s plans come at a critical time for the iron and steel industry in the United States. With the ever-growing demand for lower-carbon steel, their strategy aligns perfectly with the needs of Electric Arc Furnace (EAF) steelmakers who require high-quality, low-carbon iron units for steel production. This shift, combined with a strategic response to promote domestic production, highlights MagIron’s necessary role in bolstering local industries.

Strategic Restart Plan

MagIron’s approach to restarting its current portfolio involves leveraging existing facilities, which have endured approximately $660 million of historical investments, and presents a replacement value exceeding $1.3 billion. This provides a distinct advantage in terms of capital costs and timelines compared to constructing new plants from scratch. With a Final Investment Decision (FID) anticipated by early 2026, refurbishment and construction efforts are slated to begin by mid-2026, aspiring to reach operational readiness by early 2027.

Vision for the Future

Larry Lehtinen, CEO of MagIron, expressed optimism about the findings: “This study not only validates our operational approach but confirms MagIron’s unique position as a dependable U.S. supplier of raw materials critical for steel manufacturing. Our immediate goal is to produce premium DR-grade pellets for the domestic sector, yet our facilities also provide an exciting pathway into pig iron production, which would establish us as the first integrated merchant pig iron operation in the U.S.”

With the groundwork laid out in this groundbreaking DFS, MagIron is now concentrating its efforts on securing the necessary funding options for an effective restart, facilitating a smooth transition back into the competitive arena of iron and steel production.

Independent Verification

The results of this feasibility study have been thoroughly examined by qualified professionals per the National Instrument 43-101 standards. The insights garnered from these evaluations underscore the technical and economic soundness of MagIron's operational strategy, cementing its standing as a pivotal player in the industry.

As MagIron LLC makes strides towards reinstating production capabilities, the anticipation surrounding its upcoming developments serves as a testament to the company's mission of sustainable, localized iron production contributing significantly to the decarbonization of the steel industry in the U.S.

Conclusion

In conclusion, the completion of this independent Definitive Feasibility Study marks a significant milestone for MagIron, positioning the company not just as a contributor to the steel market, but also as an innovator aiming at creating sustainable practices in iron ore production. The unfolding story of MagIron is one that holds the promise of revitalizing both local economies and the broader American steel industry.