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CARGILL APPROVES WEST COAST MILL FOR NORTH STAR STEEL

 MINNEAPOLIS, June 8 /PRNewswire/ -- North Star Steel Company today announced that it has received approval from Cargill, its parent company, to locate a $100-million steel-recycling minimill in the southwestern United States that will serve West Coast construction markets.
 "No decision on the mill location has been made, but the two most likely sites are near Kingman, Ariz., and Wabuska, Nev.," said Bob Garvey, president of North Star Steel. "We have been encouraged by economic-development efforts in both Arizona and Nevada that indicate they want to attract safe and responsible recycling businesses. Their state and local governments are working to provide the business and economic environment in which that can occur."
 The mill will be engineered to include the best-available technology to safeguard the environment and streamline steel-production efficiency and quality, Garvey said. He indicated that the company still must negotiate competitive electric-rate contracts, be assured that adequate electric-distribution and water-supply systems will exist and receive environmental and construction permits from appropriate authorities before deciding on the minimill location.
 "We have had ongoing conversations with utility companies in both locations and have done environmental modeling at both sites. The Arizona applications have been made, and we are trying to determine if a competitive utility rate can be achieved in Nevada before making applications there," he said. Garvey said North Star hopes to make a final decision within the next 30 days.
 The minimill will initially employ 150-200 steelworkers and be capable of producing approximately 500,000 tons of new construction- grade steel by recycling old automobiles, appliances and industrial scrap, Garvey said. "These societal discards otherwise would occupy space in municipal or private landfills, or worse yet, become unwanted roadside and residential ornaments. We have demonstrated that North Star is part of the recycling solution," he said.
 Steel minimills use electric-arc furnace technology to melt old steel into new products, rather than traditional coke-oven blast furnaces used by integrated steel producers. Garvey explained that the mill will serve the growing market for construction products and rods in the Southwest.
 "Several steel companies that formerly served those markets have ceased operations during the past few years, while the demand for steel continued to grow. We believe we can provide the products and services to meet those needs competitively from either the Nevada or Arizona locations," he said.
 Once a site is selected and engineering plans are finalized, construction of the mill will take between 12-14 months, he said.
 -0- 6/8/93
 /CONTACT: Greg C. Lauser of Cargill, 612-475-6196/


CO: Cargill, Incorporated; North Star Steel Company ST: Minnesota IN: MNG SU:

AL -- MN002 -- 6437 06/08/93 10:07 EDT
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Date:Jun 8, 1993
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