Mesabi Metallics Gains $150 Million Boost for Minnesota Iron Ore Venture

Mesabi Metallics Company LLC, part of the Essar Group, has secured $150 million financing from Macquarie Group for its iron ore mine and pellet plant in Minnesota, opening in 2026. Alongside previous funding, the project enhances US steel supply independence, supported by more than $2 billion equity investment.

Mesabi Metallics Company LLC, a subsidiary of the Essar Group, has secured a significant financial boost with $150 million from Macquarie Group. This funding is crucial for advancing the development of its Direct Reduction quality iron ore mine and pellet plant in Minnesota, slated to commence operations in the third quarter of 2026.

The recent financing rounds contribute to a robust financial framework for the project, which has also attracted a $520 million senior secured credit facility from Breakwall Capital and backing from the US Export-Import Bank. The initiative spans more than 16,000 acres and aims to fortify domestic steel supply chains while reducing foreign reliance.

The company's strategic $2.5 billion investment underscores its commitment to the US steel sector, with over $2 billion in equity already committed. The plant is set to supply the surging electric arc furnace steel market with DR-grade iron ore, emphasizing the project's pivotal role in the industrial landscape.

(With inputs from agencies.)