Iran conflict highlights need for North American iron-ore pellet capacity

The BlackRock iron-ore pellet project will be located near infrastructure, situated on the Port of Saguenay.
Canada-based Strategic Resources says the ongoing tensions in Iran and the Persian Gulf underscore the need to accelerate development of iron-ore pellet capacity in North America, as geopolitical risks threaten supply chains.
The company said the Middle East and Gulf region have become key hubs for iron-ore pellet production and export over the past decade, supplying a significant share of global seaborne pellet trade to direct reduced iron and steel producers in Europe, the Middle East and Asia.
However, disruptions to shipping routes and energy markets linked to the conflict are tightening already constrained supplies of pellets and high-grade iron-ore, while adding volatility for steelmakers pursuing decarbonisation strategies.
CEO Sean Cleary said the situation highlighted the risks of concentrating supply in geopolitically sensitive regions.
“The conflict in the Gulf is a clear reminder that concentrating a large portion of the world's iron-ore pellet supply in one geopolitically sensitive region creates real risk for steel producers and their customers,” he said.
“If we want reliable access to high-quality pellets to support low-carbon steelmaking, we need to build more capacity in stable, resource-rich jurisdictions like Canada and the rest of North America.”
Strategic Resources is advancing the BlackRock project at Port Saguenay, in Quebec, which the company describes as the most advanced new pellet capacity project in North America.
Phase 1 of the project is planned to produce four-million tonnes a year of high-quality iron-ore pellets, aimed at supplying steelmakers in Canada, the US and Europe.
The facility is expected to be powered by Quebec’s hydroelectric grid and connected to a natural gas pipeline, supporting lower-carbon pellet production for steelmakers transitioning to cleaner technologies.
The project is currently progressing through the provincial environmental authorisation amendment process.
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