SUNCOKE ENERGY, INC. ANNOUNCES A NON-BINDING LETTER OF INTENT TO CONSTRUCT, OWN AND OPERATE STATE-OF-THE-ART GRANULATED PIG IRON FACILITIES SUPPLYING METALLICS TO ELECTRIC ARC FURNACES
SunCoke Energy (NYSE: SXC) has announced a non-binding letter of intent to acquire U.S. Steel's Granite City Works blast furnaces and construct a 2.0 million ton granulated pig iron facility. The agreement outlines processing iron ore supplied by U.S. Steel for a decade. Project assessments are ongoing, with a goal to finalize agreements soon. Construction is expected to take about two years. This move will enhance SunCoke's footprint, positioning it as a diversified supplier of coke and metallics in the steel industry.
- Acquisition of U.S. Steel's Granite City Works enhances operational footprint.
- Constructing a granulated pig iron facility with a capacity of 2.0 million tons.
- Secures a long-term agreement (10 years) to process iron ore for U.S. Steel.
- None.
SunCoke would acquire U. S. Steel's Granite City Works blast furnaces and build a 2.0Mt granulated pig iron facility
LISLE, Ill., June 28, 2022 /PRNewswire/ -- SunCoke Energy, Inc. (NYSE: SXC) ("SunCoke") announced it has entered into a non- binding letter of intent with United States Steel Corporation ("U. S. Steel") that sets out the principal terms and conditions upon which SunCoke would process iron ore supplied by U. S. Steel to manufacture granulated pig iron for U. S. Steel on a 10 year initial term.
The parties are currently assessing capital and other project requirements, with the goal of entering into definitive agreements once these assessments are complete. The agreements would include SunCoke's acquisition of blast furnaces and other ancillary assets at U. S. Steel's Granite City Works. The permitting and construction of the contemplated granulated pig iron facilities with a combined annual production capacity of 2.0 million tons is expected to take approximately 2 years. SunCoke will continue to operate its Granite City coke plant, supplying coke to the Granite City Works blast furnaces.
"This project significantly enhances SunCoke's current footprint allowing us to become a diversified supplier of coke and metallics to the steel industry. It also demonstrates our long-term customer's confidence in SunCoke's operational and technical expertise." said Mike Rippey, President and Chief Executive Officer of SunCoke Energy, Inc.
SunCoke Energy, Inc. (NYSE: SXC) supplies high-quality coke to domestic and international customers. Our coke is used in the blast furnace production of steel as well as the foundry production of casted iron, with the majority of sales under long-term, take-or-pay contracts. We also export coke to overseas customers seeking high-quality product for their blast furnaces. Our process utilizes an innovative heat-recovery technology that captures excess heat for steam or electrical power generation and draws upon more than 60 years of cokemaking experience to operate our facilities in Illinois, Indiana, Ohio, Virginia and Brazil. Our logistics business provides export and domestic material handling services to coke, coal, steel, power and other bulk customers. The logistics terminals have the collective capacity to mix and transload more than 40 million tons of material each year and are strategically located to reach Gulf Coast, East Coast, Great Lakes and international ports. To learn more about SunCoke Energy, Inc., visit our website at www.suncoke.com.
This press release contains "forward-looking statements" (as defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended). Such forward- looking statements include statements that are not strictly historical facts, and include, among other things, statements regarding: our expectations of financial results, condition and outlook; anticipated effects of the COVID-19 pandemic and responses thereto.
Forward-looking statements often may be identified by the use of such words as "believe," "expect," "plan," "project," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "will," "should," or the negative of these terms, or similar expressions. Forward-looking statements are inherently uncertain and involve significant known and unknown risks and uncertainties (many of which are beyond the control of SunCoke) that could cause actual results to differ materially. Such risks and uncertainties include, but are not limited to domestic and international economic, political, business, operational, competitive, regulatory and/or market factors affecting SunCoke, as well as uncertainties related to: pending or future litigation, legislation or regulatory actions; liability for remedial actions or assessments under existing or future environmental regulations; gains and losses related to acquisition, disposition or impairment of assets; recapitalization; access to, and costs of, capital; the effects of changes in accounting rules applicable to SunCoke; and changes in tax, environmental and other laws and regulations applicable to SunCoke's businesses.
Currently, such risks and uncertainties also include the impacts on our industry and on the U.S. and global economy resulting from COVID-19, including actions by domestic and foreign governments and others to contain the spread, or mitigate the severity, thereof.
Forward-looking statements are not guarantees of future performance, but are based upon the current knowledge, beliefs and expectations of SunCoke management, and upon assumptions by SunCoke concerning future conditions, any or all of which ultimately may prove to be inaccurate. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. SunCoke does not intend, and expressly disclaims any obligation, to update or alter its forward- looking statements (or associated cautionary language), whether as a result of new information, future events or otherwise after the date of this press release except as required by applicable law.
In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, SunCoke has included in its filings with the Securities and Exchange Commission cautionary language identifying important factors (but not necessarily all the important factors) that could cause actual results to differ materially from those expressed in any forward-looking statement made by SunCoke. For information concerning these factors and other important information regarding the matters discussed in this press release, see SunCoke's Securities and Exchange Commission filings such as its annual and quarterly reports and current reports on Form 8-K, copies of which are available free of charge on SunCoke's website at www.suncoke.com. All forward-looking statements included in this press release are expressly qualified in their entirety by such cautionary statements. Unpredictable or unknown factors not discussed in this press release also could have material adverse effects on forward-looking statements.
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SOURCE SunCoke Energy, Inc.
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