Essar-Backed Mesabi Metallics Secures $150 Million Funding from Macquarie for US Iron Ore Facility

Essar Group's Mesabi Metallics Secures $150-Million Investment from Macquarie Group

The Essar Group's Mesabi Metallics has secured a significant investment of $150 million from Macquarie Group for its under-construction iron ore and pellet project in the US state of Minnesota. This new funding deal follows similar investments for the $2.5 billion project from the US EXIM Bank as well as Breakwall Capital.

The Essar Group has invested around $2 billion in the project, which is expected to be one of the largest private sector investments in Minnesota. The 16,000-acre mine and manufacturing facility is the first new mine and pellet plant in over 50 years in the state. Currently, around 800 workers are at the construction site, working tirelessly to bring the project to completion.

The $150-million investment from Macquarie Group marks a major milestone for Mesabi Metallics, building on the momentum established with its recent financial partnerships. The project reflects growing confidence in the quality, scale, and strategic importance of the project, which aims to strengthen domestic steel supply chains and reduce dependence on imports.

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The iron ore pellets to be manufactured at the plant are expected to be the cleanest source of feedstock for electric arc furnace-based steelmaking in North America, reducing the dependence on pellet imports. This project is a high-quality and strategically important development for the US steel sector, and Macquarie Group looks forward to supporting Mesabi Metallics over the long term.