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Mesabi Metallics Secures US$150 Million for American DR-Grade Iron Ore Mine and Pellet Plant
04/08/2026 - Mesabi Metallics Co. LLC along with Essar Group announced it has secured US$150 million of financing from Macquarie Group for the startup of its direct reduction (DR)–grade iron ore mine and pellet plant in Nashwauk, Minn., USA, in the third quarter of 2026.
The company said this financing is in addition to the US$520 million senior secured credit facility with Breakwall Capital announced last month. Essar Group has already invested over US$2 billion into the project. It has also gotten support from the U.S. Export-Import Bank.
“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,” said Joe Broking, president and chief executive officer of Mesabi Metallics.
The US$2.5 billion plant will take up over 16,000 acres and supply the next-generation electric arc furnaces (EAFs) of American steelmaking, the company said. Over 8,000 construction workers are currently on-site, making it one of the largest private-sector industrial investments in Minnesota’s history.
“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,” said Mike Burns, senior managing director in Macquarie Group’s commodities and global markets business.
“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,” said Joe Broking, president and chief executive officer of Mesabi Metallics.
The US$2.5 billion plant will take up over 16,000 acres and supply the next-generation electric arc furnaces (EAFs) of American steelmaking, the company said. Over 8,000 construction workers are currently on-site, making it one of the largest private-sector industrial investments in Minnesota’s history.
“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,” said Mike Burns, senior managing director in Macquarie Group’s commodities and global markets business.
