Mesabi Metallics, supported by Essar Group, has agreed to sell 50% of its royalty interest to The Metals Royalty Company Inc. (TMCR) for $265 million. The transaction will be completed in two equal tranches of $132.5 million each, with the first tranche already closed on June 1, 2026, and the second tranche expected to close within 60 days. The majority of the proceeds will be used for the future growth of Mesabi Metallics.
The sale underscores the quality and strategic importance of Mesabi Metallics’ Direct Reduction (DR) grade iron ore mine, beneficiation plant, and pellet plant in Minnesota. The company is set to begin production in the third quarter of 2026, becoming a significant domestic producer of merchant DR-grade iron ore pellets in North America. These pellets are crucial for electric arc furnace steelmaking, reducing the heavy reliance on imports.
Mesabi Metallics is positioned to be a low-cost iron ore producer globally, benefiting from the exceptional grade and scale of its ore body, modern processing infrastructure, and strategic location in the midwestern United States. The company aims to produce high-quality DR pellets, preferred by electric arc furnace steelmakers, contributing to domestic manufacturing competitiveness.
The recent financing commitments totaling over $670 million, along with TMCR’s investment, reflect growing confidence in Mesabi Metallics’ assets and strategic importance. This investment is seen as a validation of Mesabi’s role in rebuilding domestic industrial capacity and securing critical supply chains, especially in the context of DR-grade iron ore’s increasing strategic significance.
