Severstal has bought a 25.6% stake in Iron Mineral Beneficiation Services (IMBS) for USD 17 million as part of a deal that will allow it to globally roll out Finesmelt technology. The South African-developed and patented Finesmelt can treat fine and superfine iron ore that is normally put on dumps because it cannot be treated in blast furnaces. The process creates a metallic iron product that can be turned into briquettes and fed into furnaces in place of scrap steel. This will help the global steel industry in its quest to find an economic source of metallic iron to complement limited supplies of scrap. The first modular plant with a capacity of 50,000tns/yr will be built within two years in Phalaborwa to take advantage of the 240 million ton magnetite stockpile at Palabora Mining. Supply deal talks with Palabora, which is owned by Rio Tinto and Anglo American, are under way.