U. S. Steel broke ground today on a direct reduced iron (DRI) production facility at its Big River Steel Works in Osceola, Arkansas. The company anticipates the $1.9 billion investment will strengthen its advanced capabilities by linking iron ore production in Minnesota to electric arc furnace (EAF) driven steelmaking in Arkansas.
Preliminary site preparation is underway, with construction scheduled to begin this year. U.S. Steel expects the project to create approximately 200 full-time positions and nearly 2,000 construction jobs.
“From a rock in the ground to a coil from our mill, this facility creates a true mine to mill connection within U. S. Steel,” Big River Steel Works Chief Operating Officer Daniel Brown said. “It gives us greater control over a critical raw material, strengthens supply reliability and provides more flexibility to produce the advanced steels our customers need.”
Direct reduced iron is a high-quality ore-based feedstock for EAFs produced by removing oxygen from iron ore without melting it. U.S. Steel will locate the new facility next to Big River 2 so DRI can be fed hot directly into its EAFs, supporting reduced emission steelmaking for the automotive, appliance and solar industries.
The company added that the DRI would act as a replacement for prime scrap and can be formed and shaped into easily transportable hot briquetted iron for use at Big River Steel Works or other destinations.
U. S. Steel acquired steel producer Big River Steel in 2021 and the DRI facility is the latest expansion of the campus, which houses four EAFs and reportedly produces more than six million tons of steel annually.
