A major moment for Keetac, and their DR-grade pellet project. The $150 million dollar investment made by parent company U.S. Steel means a move to the future of steelmaking.

State leaders attended a celebration with leadership from U.S. Steel on Thursday. The ceremony included a ribbon cutting.

“The Keetac team defined greatness on this project, working through the toughest winter conditions in 2022-2023. And simply being the unknown process. They nailed it,” shared Travis Kolari, the plant manager for Minnesota Ore Operations.

DR-grade pellets look similar, but have a higher iron content. They are used in DRI plants and the newer methods of steelmaking.

Keetac can also switch and make the traditional blast furnace pellets in the new addition as well.

Four years ago, Keetac was idled due to the pandemic. And it was the last facility to come back online.

Now it’s considered a bright spot for the company. “What this project does is ensure more security and stability,” shared U.S. Steel CEO Dave Burritt.

Crews broke ground on the project in 2022. The company said it was completed ahead of time and on budget, with no recordable injuries.

The first shipment left for customers two weeks ago.

Mike Bakk, Director of Operational Readiness, said, “We started on May 1st, and have produced 200,000 tons, and they’ve left on ten trains. This is one of the largest DR-grade pellet projects, and it’s a big deal not just for Keetac, but for the United States.”

The capacity for the DR-grade is 4 million tons a year, according to the company.

Burritt also introduced three members of the Nippon Steel team to the crowd as well. Nippon plans on acquiring U.S. Steel later this year.