U.S. company Mesabi Metallics, part of India's Essar Group, announced it has secured $150 million in financing from Australian multinational investment banking and finance group Macquarie Group, supporting the development of its iron ore direct reduction (DR) project in Minnesota.
The financing will support the planned start-up of the company's mine and pellet plant in the third quarter of this year. accelerating the momentum of the project.
The $150 million financing follows previously announced a $520 million secured loan from Breakwall Capital and Valor Mining Credit Partners II, highlighting continued financial support for the project.
The facility is designed to supply high quality DR grade pellets for electric arc steel production furnaces, supporting cleaner steelmaking processes.
Key role in US steel supply chain
Mesabi Metallics is developing a new domestic source of DR-grade iron ore at a time when the United States seeks to:
- strengthen industrial supply chains,
- reduce dependence on imported raw materials
- to support sectors such as manufacturing, infrastructure and defense.
The project is expected to supply next-generation electric arc furnaces, which are widely used in low-emission steel production.
Once completed, it will be the first new iron ore and pellet mine
