UPDATE 1-Nucor receives La. permit to build iron plant

* DRI iron plant to produce high-quality steel products

* Could be first of 3-phase project depending on demand

* Plant startup expected in 2013

* Cost range of $3 bln to $6 bln depends on phases built

* As many as 1,000 jobs may be created (Updates with comments from CEO, details)

NEW YORK, Jan 27 (Reuters) - Nucor Corp (NUE.N) said on Thursday the Louisiana Department of Environmental Quality issued the steelmaker an air quality permit for its facility in St. James Parish that makes direct reduced iron.

The permit allows the Charlotte, N.C.-based mini mill to begin ordering equipment and start construction immediately.

Nucor CEO Daniel DiMicco told analysts on the company's fourth-quarter earnings call that he expects construction to start immediately, some equipment orders have already been placed. The anticipated start-up date is mid-2013.

"These plants will enable us to continue to allow for greater self sufficiency, controlling more of our own raw materials along with assuring us that high-quality raw material feed," the chief executive said.

DRI is consumed primarily by mini steel mills that can melt only rich sources of metal, such as steel scrap, but not iron ore, to improve the quality of their steel.

"We received the final permit for the two 2.5-million-tons DRI plants in Louisiana. Each of these will produce high quality DRI to use in our SBQ (special bar quality) plate and sheet metals," DiMicco told analysts.

The permit allows for construction and operation of two DRI plants with a combined annual DRI production of 5.5 million short tons. Initially, Nucor said, it will build one DRI plant with plans to expand to a second facility.

Direct reduction technology uses natural gas to remove impurities from iron ore pellets to produce the high quality reduced iron used by Nucor's steel mills. Its mini mills produce high quality steel products, such as sheet, plate and special bar quality steel, by using DRI, with recycled scrap.

Nucor said the DRI facility is the first phase of a multi-phase plan that may include a coke plant, blast furnace, pellet plant and steel mill at the site.

It expects to create about 500 jobs during peak construction, with the first phase adding 150 permanent jobs, at average pay of about twice the median household income for that area of Louisiana.

If additional phases of the project are constructed, Nucor would have a total investment of over $3 billion and increase permanent employment to more than 1,000.

DiMicco said the $3 billion cost for the St. James project included some follow-on spending beyond the two DRI plants.

"The first phase, we said, really only priced out at $750 million. The number in the press release covers predominantly the two DRI plants and potentially a pelletizing operation at that facility and all material-handling equipment," he said.

The CEO added that the third phase will add finishing, rolling and steel making operations depending on how the market develops over the next several years.

To date, the company has invested more than $50 million to buy nearly 4,000 acres on the Mississippi River for the facility. (Reporting by Carole Vaporean; Editing by Walter Bagley)