Mesabi Metallics Company LLC, backed by Essar Group, announced that it secured $150 million of financing from Macquarie Group to support the Q3 2026 startup of its Direct Reduction (DR)-grade iron ore mine and pellet plant in Nashwauk, Minnesota.
Located on more than 16,000 acres in Northern Minnesota, Mesabi Metallics' $2.5 billion facility will supply the next-generation electric arc furnaces of American steelmaking. The mining company expects the site to provide an American source of DR-grade iron ore as the U.S. works to strengthen industrial supply chains and reduce reliance on imported raw materials.
Essar Group has already invested more than $2 billion of equity into the project. Mesabi Metallics has also received support from Breakwall Capital and the U.S. Export-Import Bank (EXIM).
"Together, these transactions reflect growing confidence in the quality, scale and strategic importance of our project as we build a new American source of DR-grade iron ore to strengthen domestic steel supply chains and reduce dependence on imports," Mesabi Metallics President and CEO Joe Broking said.
