An $18 billion investment in U.S. steel production will unite an iron ore mine in Minnesota with a new complex in Iowa, creating a fully integrated steel company. Mesabi Metallics 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. The company made the announcement at the White House today.
Essar Group, a multinational industrial group based in India, is the project sponsor of Mesabi Metallics with operations spanning steel, energy, infrastructure, and shipping.
On September 17, , Export-Import Bank of the United States (EXIM) Chairman John Jovanovic visited the company’s iron ore mine as it began operations in northern Minnesota. (Photo: Mesabi Metallics)
“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 DRI to EAF 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, Chief Executive Officer for Mesabi Metallics.
Mesabi Metallics’ iron ore mine on Minnesota’s Mesabi Iron Range is the first new iron ore mine built in the United States in 50 years, with close to $3 billion invested. Located in Nashwauk, Minnesota, the mine will produce Patriot Pellet, the company’s direct-reduction-grade (DR-grade) iron ore pellet engineered for modern electric arc furnace steelmaking. More than 1,500 construction workers are on site today, alongside over 200 full-time employees already working at the mine, building towards 350 full-time jobs once fully operational.
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 company will make a $15 billion investment to build the new complex in Iowa, creating over 6,000 jobs during construction while utilizing local vendors to support additional job growth throughout the area. Once the plant is operational, Mesabi Metallics plans to employ at least 1,750 full-time employees.
Mesabi Metallics’ integrated steel complex in Iowa will pursue efficiency and environmentally-friendly operations by utilizing hot direct-reduced iron (DRI) and electric arc furnace (EAF) technology.
“I’m thrilled to welcome Mesabi Metallics to Iowa and partner with their team to forge the future of American steel manufacturing,” said Iowa Governor Kim Reynolds. “Together, we will produce a reliable supply of high-quality, American-made steel that strengthens the nation’s industrial base, reduces our dependence on foreign supply chains, and supports economic resilience in our state and across the region.”