Mesabi Metallics announced at the White House an $18 billion investment to build a fully integrated steel company, uniting its iron ore mine on Minnesota’s Mesabi Iron Range with a new steel complex in Iowa. Mesabi will invest $15 billion to build the Iowa facility, in addition to the $3 billion being spent to complete the iron ore mine in Minnesota.
Billed as the largest single investment in a steel complex in American history, the project will create an estimated 1,750 permanent jobs and support up to 6,000 construction jobs across Minnesota and Iowa, deliver economic growth across the Midwest, and reshape American steelmaking with a supply chain that is 100% American-mined, melted and poured. The mill is projected to produce 7.5 million tons of steel per year in its first phase, rising to about 10 million tons. It is also expected to add $95 billion to the U.S. economy over the next decade.
“This is a major moment for U.S. made steel, combining the highest quality direct-reduction grade iron ore pellet from Minnesota’s Iron Range with the most advanced steelmaking technology in Iowa to supply the high-quality, all-American steel that our national defense, cars and trucks, shipbuilding, household appliances, energy, and infrastructure depend on,” said Joe Broking, CEO of Mesabi Metallics.
Mesabi Metallics’ iron ore mine on Minnesota’s Mesabi Iron Range is the first new iron ore mine built in the USA in 50 years. Located in Nashwauk, Minn., the mine will produce Patriot Pellet, the company’s direct-reduction-grade (DR-grade) iron ore pellet engineered for modern electric arc furnace steelmaking. That iron ore – and the Patriot Pellet made from it – will feed directly into the Iowa steel complex, the next link in a fully domestic, mine-to-mill supply chain.
The Essar Group, a multinational industrial group based in India and the project sponsor for Mesabi Metallics, has operations spanning steel, energy, infrastructure and shipping. Beyond its backing of Mesabi Metallics, Essar’s global portfolio includes interests in oil and gas, power generation, ports and logistics, reflecting decades of experience building and operating large-scale, capital-intensive industrial projects worldwide. That experience underpins Essar’s role as the project sponsor driving the development of Mesabi Metallics and its investment in American manufacturing.
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