Mexican steelmaker Altos Hornos de México (AHMSA) has received court approval to sell the assets of its iron ore pelletizing plant in Indiana, US, for $5 million, as part of its ongoing bankruptcy proceedings.
The ruling authorizes the direct sale of all equipment and machinery at the facility, which previously operated at an annualized capacity of around 2.2 million mt of DR-grade pellets, with potential expansion to 3.0 million mt before being idled in 2016.
The assets will be sold to US-based miner Magiron LLC, which submitted a binding offer exceeding the $2.24 million liquidation appraisal conducted by Hilco Valuation Services. The buyer will assume all associated costs, including taxes, utilities, insurance, security, and an outstanding $1.05 million lease obligation.
According to court-appointed trustee Victor Manuel Aguilera Gómez, the transaction represents one of the most significant liquidity-generating actions in AHMSA’s restructuring process.
Magiron stated that the acquisition will allow it to restart pellet production relatively quickly and pursue the development of the United States’ first integrated merchant pig iron operation, supporting a fully domestic supply chain.
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