Mesabi Metallics Company LLC, supported by Essar Group, has announced securing $150 million in financing from Macquarie Group. This funding will aid in the startup of a Direct Reduction grade iron ore mine and pellet plant in Nashwauk, Minnesota, scheduled for Q3 2026. The project has seen recent financial support, including a $520 million credit facility with Breakwall Capital, highlighting its significance in the American iron ore sector.
The financing from Macquarie Group adds to the project’s momentum, emphasizing its strategic importance. Mesabi Metallics has also received backing from the US Export-Import Bank, underscoring its role in strengthening various sectors like manufacturing, infrastructure, automotive, shipbuilding, and defense. This initiative aims to establish a new source of DR-grade iron ore in the United States, aligning with efforts to enhance domestic supply chains and reduce reliance on imports.
Situated on over 16,000 acres in Northern Minnesota, Mesabi Metallics is nearing completion of a $2.5 billion merchant DR-grade iron ore mine and pellet plant. This facility is poised to supply advanced electric arc furnaces in American steelmaking, promoting cleaner and more energy-efficient steel production methods. The project, currently engaging over 800 construction workers, stands as one of Minnesota’s most significant private sector investments, with Essar Group having already injected over $2 billion in equity.
Joe Broking, President and CEO of Mesabi Metallics, expressed optimism about the project’s progress, citing the recent financial partnerships as a testament to its quality and strategic value. Macquarie Group’s Senior Managing Director, Mike Burns, highlighted the company’s commitment to supporting Mesabi’s crucial role in the US steel sector, emphasizing the project’s long-term significance.
