A news outlet, based out of Halifax, reported Wednesday Severstal was pulling out of its plans for a massive operation here.

In a statement, the company’s affiliate International Iron Beneficiation Group disputed that claim saying a process patented by a South African firm is going according to plan.

"The project of IIBG in South Africa is currently on-track. Once the South African plant is commissioned and operational, the North American options for similar technology will be considered. Proposed projects in North America are not shelved,” International Iron Beneficiation Group CEO Dmitry Solomin said. It remains unclear when a final decision on the location for the plant will be announced.

Sydney is one of four sites in North America that Severstal is considering for the iron ore facility, which would employ 500 to 700 at peak production. Sept-Iles, Que., was the other Canadian site shortlisted.

The plant would be used to convert superfine iron ore into metallic iron units. The final product would be used for steel production, mostly in electric arc furnaces as an effective substitute for scrap. The process is said to be cost-efficient and has lower environmental impacts than traditional processes.

A feasibility study was completed by CBCL Ltd. for the International Iron Beneficiation Group. The province provided $400,000 in funding for the study, and Enterprise Cape Breton Corp. put up another $300,000.

Department of Economic and Rural Development spokeswoman Tina Thibeau said provincial officials were in touch with Severstal early Wednesday and confirmed there was “no change” in the project’s status.

The former Sydney steel plant property is being proposed as the site for the plant because of its easy access to Sydney harbour with a route directly on to Highway 125 from the Sydney Port Access Road.

Construction of the facility has been estimated at $800 million to $1 billion, which would create a boom in the construction trades.