Emirates Steel Industries has signed a long-term contract with Sweden’s LKAB to buy iron ore pellets to use at its operations in Abu Dhabi.
The UAE’s largest steelmaker now consumes about 4.8 million tonnes a year (t/y) of iron ore pellets after completing its most recent expansion in 2012.
Further planned projects will expand Emirates Steel’s capacity to 5.5 million t/y from the current 3.5 million t/y.
The agreement was signed by the chief executive officers of the two companies in Abu Dhabi on 19 March. LKAB is a mining company with iron ore assets in the north of Sweden and operations in several other countries.