Mesabi Metallics, backed by India’s Essar Group, has secured a USD 520 mln senior secured credit facility as it advances its iron ore project in Minnesota toward commercial operations later this year.
The financing has been arranged with Valor Mining Credit Partners II (VMP II), a mining-focused credit fund managed by Breakwall Capital in partnership with Vitol.
Mesabi Metallics is developing a USD 2.5 bln direct reduction (DR) grade iron ore mine and pellet plant on a 16,000-acre site in northern Minnesota. The project is expected to supply high-grade DR pellets to the U.S. market, supporting electric arc furnace (EAF)-based steel production and reducing reliance on imported raw materials.
Essar Group has invested over USD 2 bln in equity, while the project has also received backing from the U.S. Export-Import Bank.
Once completed, the facility will be among the first new iron ore mines and pellet plants in Minnesota in decades and is expected to play a role in strengthening domestic steel supply chains.
