en.Wedoany.com Reported - U.S. steel firm Mesabi Metallics, backed by Essar Group, announced it has secured $150 million in financing from Macquarie Group to support the construction of its world-class direct reduction (DR)-grade iron ore and pellet plant in Nashwauk, Minnesota, which is scheduled to commence operations in the third quarter of 2026.
This financing is part of Mesabi Metallics' recent fundraising activities, following the company's earlier announcement of a $520 million senior secured credit facility in partnership with Breakwall Capital. Furthermore, support from the U.S. Export-Import Bank (EXIM) further underscores the strategic importance of this project to U.S. manufacturing, infrastructure, automotive, shipbuilding, and defense sectors.
Mesabi Metallics' plant, located in northern Minnesota, covers over 16,000 acres with a total investment of $2.5 billion (approximately 17 billion RMB). Upon completion, it will be the first new mine and pellet plant in Minnesota in nearly 50 years, primarily supplying U.S. steelmakers with high-quality, clean, and energy-efficient DR-grade iron pellets required for next-generation electric arc furnace production. Currently, over 800 construction workers are on-site, making it one of the largest private-sector industrial investments in Minnesota's history. Essar Group has invested over $2 billion in equity into the project, and Mesabi Metallics itself has invested more than $2.2 billion.
Joe Broking, President and CEO of Mesabi Metallics, stated that this financing from Macquarie marks a significant step forward for the project and solidifies the strong momentum established by recent financial partnerships. Mike Burns, Senior Managing Director of Macquarie Group's Commodities and Global Markets business, expressed his anticipation of long-term support for Mesabi Metallics' high-quality and strategically important project in the U.S. steel industry.
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