OREANDA-NEWS. January 6, 2012. EssarSteel Minnesota LLC(“ESML” or the “Company”) announces that it has received the results of its National Instrument ("NI") 43-101 Mineral Resources and Mineral Reserves Report (the “Technical Report”) prepared by Met-Chem Canada Inc. (“Met-Chem”) in connection with its Minnesota iron ore project.  In that technical report, measured and indicated resources for the project are estimated to be 1.77 billion metric tons, with a grading of 31.78% total iron, making it a leading iron ore resource party in the North American Basin. Inferred mineral reserves and resources are estimated at 201 million metric tons.

"The measured, indicated and inferred resources of nearly 2 billionmetric tons at Essar Steel Minnesota’s iron ore project exceeded our expectations,” commented Madhu Vuppuluri, President and CEO of Essar Steel Minnesota. “We are also pleased to learn that 95% of total measured and indicated resources are made up of mineral reserves. We believe that our project contains sufficient reserves and resources not only to increase the planned production of iron ore pellets from 4.1 million metric tons to 7 million metric tons annually, but also will enable us to evaluate options to further utilize our increased mineral resources.”

ESML’s project is a taconite iron ore project located at Nashwauk, Minnesota in the western part of the Mesabi Range, approximately 20 miles (32 km) east of Grand Rapids and 106 miles (170 km) from Duluth. The project permit area encompasses approximately 19,200 acres.  All permits for the construction and production of 4.1 million metric tons of iron ore pellets annually have been received.  Applications have been filed for a second phase expansion to add an additional 2.9 million metric tons of iron ore pellets production annually. Phase one construction of the iron ore mine, crushing facilities, concentrator and pellet plant commenced in October 2010.