Mesabi Metallics secures 150 million dollar from Macquarie Group
Nashwauk, MN, April 6 Mesabi Metallics Company LLC, backed by Essar Group, on Monday announced that it has secured $150 million of financing from Macquarie Group, supporting the Q3 2026 startup of its world-scale Direct Reduction grade iron ore mine and pellet plant in Nashwauk, Minnesota.
The latest financing builds on recent capital momentum for the structurally important American iron ore project.
The financing follows Mesabi's recently announced $520 million senior secured credit facility with Breakwall Capital, further reinforcing the strong momentum behind the project.
Mesabi has also recently received support from the US Export-Import Bank (EXIM), reflecting the project's growing strategic importance to U.S. manufacturing, infrastructure, automotive, shipbuilding, and defense.
Mesabi Metallics is building a strategically important new American source of DR-grade iron ore at a time when the United States is working to strengthen industrial supply chains and reduce reliance on imported raw materials.
Located on more than 16,000 acres in Northern Minnesota, Mesabi Metallics is completing a $2.5 billion world-scale merchant DR-grade iron ore mine and pellet plant that will supply the next generation electric arc furnaces of American steelmaking- the cleanest and most energy efficient way of making high-quality steel.
With more than 800 construction workers currently onsite, the project is one of the largest private sector industrial investments in Minnesota's history. Essar Group has already invested more than $2 billion of equity into the project.
"This financing from Macquarie marks another major step forward for Mesabi Metallics and builds on the strong momentum we have established with our recently announced financial partnerships," said Joe Broking, President and CEO of Mesabi Metallics.
"Together, these transactions reflect growing confidence in the quality, scale, and strategic importance of our project as we build a new American source of DR-grade iron ore to strengthen domestic steel supply chains and reduce dependence on imports," Broking added.
"Macquarie has enjoyed a longstanding financing relationship with Essar Group, and we are pleased to extend that relationship to their metals and mining investments in the US," said Mike Burns, Senior Managing Director in Macquarie Group's Commodities and Global Markets business.
"Mesabi is developing a high-quality and strategically important project for the U.S. steel sector, and we look forward to supporting the company over the long term," Burns added.
— IANS
Reader Comments
Interesting to see the focus on reducing import reliance and strengthening supply chains. The US is doing what we in India also need to do more aggressively - secure our own critical raw material sources. The scale is impressive.
$2.5 billion project with 800+ workers onsite! That's some serious job creation. While it's great for the US, I hope Essar and other Indian giants also channel similar investments and focus into developing our own mineral resources in states like Odisha or Jharkhand.
"Cleanest and most energy efficient way of making steel" - this is the key takeaway. The world is moving towards green steel. Indian steel companies should take note and accelerate their own transitions to electric arc furnaces and DR-grade iron ore projects.
Strategic importance for defense and shipbuilding mentioned. In today's geopolitics, controlling your steel supply chain is as important as controlling borders. A smart move by the US, and a lucrative one for Essar.
With all respect to Essar's global ambition, I do hope the environmental impact of a 16,000-acre mine is being managed responsibly. Sometimes in the rush for development and strategic projects, sustainability takes a backseat. The article doesn't mention any ESG details.
V Vikram M