SALAR NEWS

Essar-owned Mesabi invests $18B for US' largest steel plant

This includes a proposed $15 billion steel complex in Iowa and about $3 billion invested in an iron ore mine and pelletising facility in Minnesota.

PTI

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Washington, 29 Sept

President Donald Trump announced Essar-backed Mesabi Metallics' USD 18 billion investment to build a fully integrated American steel company, including what he called the "largest steel plant in American history" in Iowa.

The investment includes a proposed USD 15 billion steel complex in Iowa and about USD 3 billion invested in an iron ore mine and pelletising facility in Minnesota.

The project, which is expected to begin production by 2030, will produce about 10 million tonnes of steel a year and employ at least 1,750 people once operational, according to the White House and the company.

"Today, we're thrilled to announce that Mesabi Metallics will be building the largest steel plant in American history in the great state of Iowa," Trump said at the White House, where he appeared alongside Essar Group founder and vice chairman Ravi Ruia and his son, Rewant Ruia, chairman of Mesabi Metallics.

Mesabi Metallics, a Minnesota-based company owned by India's Essar Group, said the project will create more than 8,000 construction jobs and generate an estimated USD 95 billion in economic output during construction and the first 10 years of operations.

The company is developing the Minnesota mine in Nashwauk on the Mesabi Iron Range. It is expected to produce about 7.5 million tonnes of iron ore a year and employ about 350 people once fully operational.

The mine is expected to be the first new iron ore mine built in the United States in 50 years, according to the company and the White House.

The Minnesota operation will supply direct-reduction-grade iron ore pellets to the Iowa complex, creating what Mesabi Metallics describes as a fully integrated, domestic "mine-to-mill" steel supply chain.

"This is a defining moment for American steel and a transformative milestone for Mesabi Metallics. We are building a fully integrated steel business from the ground up, connecting Minnesota's world-class iron ore resources with steelmaking in Iowa to produce 100 per cent American steel," Rewant Ruia said.