Koch to act as Big River metallics buying agent

Big River Steel today named Koch Metallics, a subsidiary of Koch Minerals and Trading, its exclusive procurement agent for ferrous scrap and metallics raw materials.

The Arkansas-based electric arc furnace (EAF) steelmaker plans to leverage Koch's network and services to "provide alternatives to the ways metallics and flat-rolled steel have historically been bought and sold," Big River chief executive Dave Stickler said.

This includes Koch's bulk material handling capabilities across barge, rail and truck transport that will aim to reduce costs through scale and efficiency gains. Koch Minerals, a subsidiary of Koch Industries, is also a significant investor in Big River.

As a part of the move, Big River's metallics manager, Martin Baker, will join Koch as metallics procurement and conversion manager. He joined Big River in 2018.

Big River expects to complete its $700mn expansion two months ahead of schedule and before the end of 2020, doubling capacity from 1.65mn st/yr to 3.3mn st/yr.

US Steel in October 2019 acquired a 49.9pc stake in Big River Steel and has prioritized exercising an option to buy the remaining stake as part of an effort to modernize its operations. The integrated steelmaker has until late-2023 to exercise this option on the $2.3bn-valued Big River Steel.

TMS International acts as the scrap and raw materials agent for multiple US Steel mills.

By Zach Schumacher