Essar Group-backed Mesabi Metallics plans to invest USD 15 bln in a new steel complex in Iowa, US, integrating the facility with its iron ore mine in Minnesota to establish a domestic mine-to-steel supply chain.
The investment will bring the company’s total planned spending across the two projects to USD 18 bln, including nearly USD 3 bln already invested in developing the Mesabi Iron Range mine in Minnesota. The company announced the plan at the White House on September 28.
The Iowa complex will use direct reduced iron (DRI) and electric arc furnace (EAF) technology to produce steel, using direct-reduction-grade iron ore pellets from the Minnesota mine alongside steel scrap. Feeding hot DRI directly into EAFs is expected to reduce energy consumption and emissions compared with conventional blast furnace steelmaking.
The Iowa project is expected to create more than 6,000 construction jobs and at least 1,750 permanent positions once operational. Mesabi Metallics estimates that the investment could generate USD 95 bln in economic output during construction and the first 10 years of full operations.
The Minnesota mine, located in Nashwauk, is designed to produce the company’s Patriot Pellet, a direct-reduction-grade iron ore pellet for modern EAF steelmaking. More than 1,500 construction workers are currently on site, alongside over 200 full-time employees, with the workforce expected to reach 350 when the mine is fully operational.
Mesabi Metallics said the integrated project aims to supply steel for sectors including automotive, shipbuilding, energy, infrastructure and defence, while reducing reliance on foreign supply chains.