Essar-backed Mesabi Metallics $18B mine-to-mill US steel investment
- $18 billion total investment: $3 billion in a Minnesota mine and $15 billion proposed for an Iowa integrated steel complex.
- The Nashwauk mine is the first new U.S. iron ore mine in 50 years and will produce Patriot Pellet, a DR-grade pellet for EAF steelmaking.
- The project will create more than 8,000 construction jobs and employ at least 1,750 full-time workers once the plant is operational.
- The Iowa complex will use hot DRI and electric arc furnace (EAF) technology to lower energy use and emissions; projected $95 billion in economic output during construction and the first 10 years of operations.
Announcement
Essar-backed Mesabi Metallics announced an $18 billion investment to build a fully integrated U.S. steel business, combining its existing Minnesota iron ore mine and pellet plant with a proposed $15 billion steel complex in Iowa. The announcement was made at the White House with senior company executives and U.S. officials present.
Mine and feedstock
The Nashwauk, Minnesota mine—about $3 billion invested to date—is the first new U.S. iron ore mine in 50 years. It will produce Patriot Pellet, a direct-reduction-grade (DR-grade) iron ore pellet engineered for modern electric arc furnace steelmaking. More than 1,500 construction workers are currently on site, with over 200 full‑time employees already and employment expected to reach roughly 350 full‑time jobs when the mine is fully operational.
Iowa steel complex and jobs
The proposed $15 billion Iowa complex will create more than 8,000 jobs during construction and employ at least 1,750 full‑time team members in operation, while engaging local vendors and suppliers across Iowa and the Midwest.
Technology, sustainability and economic impact
The integrated complex will pair hot direct‑reduced iron (DRI) with electric arc furnace (EAF) technology, feeding hot DRI and scrap into EAFs to reduce melting energy and emissions compared with traditional blast furnaces. Mesabi Metallics projects the investment will generate $95 billion in total economic output during construction and the first ten years of full operations.
Source: Essar