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Mesabi Metallics is building a large-scale iron ore mining and processing plant in Nashwauk, Minnesota, to produce Direct-Reduction (DR) grade iron ore pellets for the Electric Arc Furnace (EAF) steel market. The plant aims to produce 7 million metric tons per year of high-iron, low-impurity DR-grade pellets, enabling domestic supply of feedstock for green steel production and reducing dependence on imported iron ore. The operation uses taconite ore beneficiation and direct-reduced iron processes in a modern pellet plant, serving the EAF segment that prefers energy-efficient, scrap-based steelmaking. The project, led by CEO Joe Broking and COO Larry Sutherland and financed by Essar Group, represents a major private investment in Minnesota and is intended to advance the region’s industrial development, support US steel supply chain security, and align with decarbonization goals through increased use of DR-grade pellets and potential green-steel pathways.
Company Size
51-200
Company Stage
Debt Financing
Total Funding
$1.4B
Headquarters
Minnesota
Founded
2008
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Mesabi Metallics plans to build a $15 billion steel plant in Iowa, which would be the largest in US history. President Donald Trump is set to announce the project at a White House event on Monday. The facility aims to begin production in 2030. The first phase is estimated to produce 7.5 million tonnes of steel per year, eventually reaching 10 million tonnes annually. The plant is expected to support up to 6,000 construction jobs and at least 1,750 permanent positions. The Export-Import Bank will issue up to $10 billion in financing for the expansion. The project will draw on iron ore from Mesabi Metallics' Minnesota Iron Range mine, valued at more than $2.5 billion. The announcement follows Trump's imposition of a 50% tariff on most steel imports during his second term.
Red, white, and blue blast: industrial might moves to make more in America [WATCH]. Mesabi Metallics has produced its first iron concentrate, secured a $770 million federal loan and proposed a $5 billion expansion that would add 500 jobs while dramatically increasing pellet production and building a direct reduced iron plant. September 19, 2026 * Mesabi Metallics produced its first iron concentrate and secured a $770 million EXIM loan completing $2.5 billion in project funding. * The company is planning a $5 billion expansion that would create 500 jobs and increase total project costs to $7.5 billion. * Mesabi wants to increase annual pellet capacity from 7 million tons to 18 million tons and build a direct reduced iron plant. * CEO Joe Broking asked Itasca County commissioners for help restoring mineral leases and advancing permit reform. Discover more Executive Branch Politics (Right) Online Image Galleries Mesabi Metallics is pairing its first iron concentrate production with plans for a sweeping $5 billion expansion, presenting the two developments at sharply different events in Itasca County. CEO Joe Broking outlined the expansion during an Itasca County Board meeting on Tuesday, Sept. 15, attended by fewer than a dozen people. Two days later, the company staged a far louder display at its mine near Nashwauk before a crowd of more than 100. Mesabi blasted apart 1.3 million tons of rock while red, white and blue dust rose into the air. The event commemorated the company's first concentrate production and a $770 million loan from the Export Import Bank of the United States, known as EXIM. Broking said Mesabi is on "the precipice of production" for its first iron ore pellets. The project is described as the first new Iron Range mine in 50 years, but the company is already pursuing financing and further expansion. Massive American flags were attached to Mesabi's 400-ton haul trucks as Broking announced production of the company's first iron concentrate. Following recent reports that Congress is considering a nationwide voter ID requirement for federal elections, do you support requiring voters to show identification before casting a ballot? By completing the poll, you agree to receive emails from Objectivist.co, occasional offers from its partners and that you've read and agree to its privacy policy and legal statement. That concentrate still must be turned into pellets, fired and reduced before becoming a final product. Mesabi originally planned to produce pellets by September. At the blast event, the company said all concentrators would be operational next month, with pellet production capabilities following soon afterward. The $770 million EXIM loan completes Mesabi's $2.5 billion in project funding, according to Broking. EXIM Chairman John Jovanovic said the loan fits the bank's mission of supporting American companies competing around the world. "We help deliver freedom, prosperity all throughout the world by way of American companies winning around the globe," Jovanovic said. EXIM could provide Mesabi Metallics with as much as $10 billion in total financing, according to a statement from Congressman Pete Stauber that EXIM shared Thursday. Federal officials at the event emphasized an America First approach and praised the Trump administration's support for mining. David Copley, a former mining executive and senior director for global supply chain in the National Security Council, called the project a "big, beautiful greenfield iron mine." "President Trump gets it," Copley said. He added, "Minerals are the foundational building blocks of everything we need for our re-industrialization efforts, and we cannot rely on our geopolitical competitors for access to these materials." Essar Group, the India-based owner of Mesabi Metallics, previously operated the project through Essar Steel. That company filed for bankruptcy in 2016 and reemerged as Mesabi Metallics the following year. State Rep. Roger Skraba, R-Ely, said he did not object to foreign ownership as long as the mine brought industry and people to his constituency. "Are they here for a quick hit and go, or are they here for the long run?" he said. At the quieter county meeting, Broking called the proposed $5 billion expansion the next investment phase for Mesabi Metallics and Itasca County. He said it would create 500 new jobs and lift the project's total cost to $7.5 billion. Mesabi plans to file for expansion permits by the end of the year, although Broking acknowledged the company's history of aggressive schedules and possible delays. Of the planned investment, $3.1 billion would expand annual pellet production capacity from 7 million tons to 18 million tons. The remaining $1.9 billion would finance a direct reduced iron plant. Such furnaces use gases including hydrogen or carbon to strip oxygen from iron and are considered a green steel practice. Broking also asked county commissioners to help address what he called "gating items" standing in the way of the expansion. His leading priority was restoring mineral leases covering 2,600 acres that the Minnesota DNR revoked in 2021 after extensive missed deadlines. The DNR transferred those leases to Cleveland Cliffs, another Iron Range mining company, in 2023. Mesabi is currently suing Cleveland Cliffs for damages in a jury trial following a monopoly lawsuit, while the County Board has already sent the DNR a letter supporting the leases' return. Broking additionally sought more efficient permitting and an end to mandatory environmental impact statements in Minnesota, pointing to Mesabi's use of electric equipment and its decarbonization goals. The Board said assistance with permit reform would be included among its discussion priorities for next year. The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of Objectivist. Contact Objectivist for guidelines on submitting your own commentary.
Mesabi Metallics has announced a $5 billion expansion plan while celebrating its first iron ore concentrate production and securing a $770 million federal loan. The mining company revealed the expansion at an Itasca County Board meeting on 15 September, two days before a blast event commemorating production milestones. The expansion would increase the project's total costs to $7.5 billion and create 500 new jobs. Of this, $3.1 billion will expand pellet production capacity from 7 million to 18 million tonnes annually, whilst $1.9 billion will fund a direct reduced iron plant. The Export-Import Bank of the United States provided the $770 million loan, completing Mesabi's $2.5 billion project funding. The bank could provide up to $10 billion in total financing. Mesabi Metallics, owned by India-based Essar Group, is the first new Iron Range mine in 50 years.
21.08.2026 - US$140 Million Secured Convertible Note Offering and a US$25 Million Senior Secured Term Loan to Fund the Additional Royalty and Repay Existing Indebtedness LONDON, UK / ACCESS Newswire / August 21, 2026 / The Metals Royalty Company Inc. ('TMCR' or ... Seite 1
Mesabi Metallics evaluating downstream opportunities. * By LEE BLOOMQUIST FOR MESABI TRIBUNE * Aug 13, 2026 * 0 As it nears pellet production on Minnesota's Iron Range, Mesabi Metallics is also exploring potential locations for a direct-reduced iron plant and steelmaking mini mill, perhaps outside Minnesota. "We are continually evaluating opportunities to go downstream," Joe Broking, Mesabi Metallics president and chief executive officer said. "One of the sites we are considering is in Kentucky. We are also looking at Minnesota. We are in no position to make a decision. We want to grow, but we want to do it in a responsible way." According to a Fastmarkets report, a consulting firm working on behalf of Mesabi Metallics has informed the Kentucky Division of Air Quality Permit Review Branch of a proposal "to construct and operate a new direct-reduced iron and scrap-to-steel manufacturing facility in Paducah, Kentucky." According to a permit application, the company would intend to produce about five million short tons of direct-reduced iron per year alongside a scrap-to-steel plant that would produce about seven million short tons of coiled steel annually, according to the report. Broking emphasized the company is looking at a number of potential locations and nothing has yet been decided. "There are multiple sites we are looking at," Broking said. The possibility of building a value-added iron plant and steelmaking facility in another state - or in Minnesota - comes as Mesabi Metallics heads toward completion of its $2.5 billion DR-grade iron ore pellet production facility near Nashwauk. Mesabi Metallics had earlier talked about building direct-reduced iron making and steelmaking facilities at Nashwauk. But company officials say construction of DRI and steelmaking making facilities at Nashwauk were not included in its most recent permit amendment in Minnesota. To build a DRI and/or steelmaking facility at Nashwauk would require Mesabi Metallics to again amend permits to put those units back into permitting, according to company officials. In addition, a full-blown Environmental Impact Statement (EIS) would be required to build the facilities in Minnesota, unlike other states, company officials say. The timetable to complete an EIS and receive permitting in Minnesota, would hold potential to delay construction timetables, according to company officials. If the company were to construct a direct-reduced iron making facility and mini mill outside Minnesota, the DR-grade pellets produced at its Nashwauk plant would feed the facility, Broking said. The pellets produced at Nashwauk will be the highest quality DR-grade pellets produced in the world, he said. From 1,700 to 1,900 contractors are working to complete the project, Broking said. The company's fleet of gigantic 400-ton haul trucks are in use, hauling material to build roads and berms. Processing equipment is expected to ramp up soon. "We expect to have a concentrator line running in August and continually producing concentrate on one mill line," Broking said. "Mill lines two and three are expected to begin running in September." Construction work is moving ahead on the pellet plant with a goal of producing the first pellets in September, Broking said. Construction activity is humming across the entire site with 25 cranes currently at work at the north end of the project where the pellet plant is being completed. Three blasts in the mine have taken place, he said. The facility's one primary crusher has been test run, but not yet run with feed. A massive hiring push is underway, Broking said. The company has received well over 2,000 applications with additional applications still coming in, he said. "These are going to be the highest paying jobs on the Range," Broking said. "It's something Mesabi Tribune is proud of along with the culture Mesabi Tribune want to build." The company recently offered jobs in the mining portion of the project to 40 applicants, he said. As of Tuesday, 37 of the 40 applicants had accepted, he said. When complete, Mesabi Metallics will be the first new pellet plant built on the Iron Range in about 50 years. At capacity it will produce about seven million tons of DR-grade pellets per year and employ about 350. With a higher iron content and lower silica content than traditional iron ore pellets, DR-grade pellets are used to make feed such as hot-briquetted iron to help make steel from mini mill electric arc furnaces. Scrap is also mixed with the higher-added iron in electric arc furnaces to produce the liquid used to make steel. (0 Ratings) Load comments