Mesabi Metallics secures $520M Breakwall financing to advance U.S. DR iron-ore project
Key highlights
- $520 million senior secured credit facility from Valor Mining Credit Partners II, managed by Breakwall Capital, in partnership with Vitol.
- $2.5 billion Direct Reduction (DR) grade iron ore mine and pellet plant on 16,000+ acres near Nashwauk, Minnesota.
- Essar Group has already invested over $2 billion of equity in the project.
- Project targets commercial start in Q3 2026 and has support from the U.S. Export-Import Bank.
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Mesabi Metallics Nashwauk DR Iron Ore Mine and Pellet Plant · United States
Commissioning & Start-up
~2024
~2025
2026-09
2026 Q3
Financing
Mesabi Metallics secured a $520 million senior secured credit facility with Valor Mining Credit Partners II, a fund managed by Breakwall Capital, in partnership with Vitol.
Project scope
The company is building a $2.5 billion Direct Reduction (DR) grade iron ore mine and pellet plant on more than 16,000 acres near Nashwauk, Minnesota, to produce DR-grade pellets for the Electric Arc Furnace market.
Construction and schedule
Over 750 construction workers are currently onsite and the project is advancing toward commercial operations later this year.
Investment and support
Essar Group has invested over $2 billion of equity into the project and it has received support from the U.S. Export-Import Bank (EXIM).
Source: Essar