US Steel
India's Essar to build largest steel plant in US, expected to create 1,750 permanent jobs
Mesabi Metallics, a company owned by India’s multinational conglomerate Essar Group, has announced an $18 billion investment to build a fully integrated steelmaking operation linking its iron ore mine on Minnesota’s Mesabi Iron Range with a new steel complex in Iowa.
The company will invest $15 billion to build the Iowa steel facility, in addition to the $3 billion being spent to complete its iron ore mine in Minnesota.
Mesabi Metallics said the project would represent the largest single investment in a steel complex in US history. It is expected to create jobs in Minnesota and Iowa, generate economic activity across the Midwest and establish a fully domestic steel supply chain, from mining and processing to steel production.
“This is a major moment for US-made steel, combining the highest-quality direct-reduction-grade iron ore pellet from Minnesota’s Iron Range with the most advanced DRI-to-EAF steelmaking technology in Iowa,” Mesabi Metallics CEO Joe Broking said.
He said the project would supply high-quality, American-made steel for sectors including national defence, automobiles, shipbuilding, household appliances, energy and infrastructure.
“Mesabi is building a world-class steel supply chain that is 100% American. Our investment will create high-paying jobs with competitive benefits in Iowa and Minnesota, generate tens of billions of dollars in US economic activity, and strengthen our domestic manufacturing base,” Broking added.
Mesabi Metallics said its iron ore mine in Nashwauk, Minnesota, is the first new iron ore mine built in the United States in 50 years. Nearly $3 billion has been invested in the project.
The mine will produce Patriot Pellet, a direct-reduction-grade (DR-grade) iron ore pellet designed for modern electric arc furnace steelmaking. The company said the pellet is among the highest-quality iron ore pellets produced globally.
More than 1,500 construction workers are currently working at the Minnesota site, along with more than 200 full-time employees. The workforce is expected to reach 350 full-time jobs once the mine becomes fully operational.
The iron ore and Patriot Pellet produced at the Minnesota mine will supply the Iowa steel complex, creating what the company described as a fully domestic mine-to-mill supply chain.
The White House separately said the project would create 1,750 permanent jobs in Iowa and support up to 6,000 construction jobs. It is also projected to contribute $95 billion to the US economy over the next decade.
The Iowa steel mill will have an initial annual production capacity of 7.5 million tons, which is expected to increase to around 10 million tons in a later phase. It will use iron ore supplied by Mesabi Metallics' Minnesota mine.
“I’m thrilled to welcome Mesabi Metallics to Iowa and partner with their team to forge the future of American steel manufacturing,” Iowa Governor Kim Reynolds said.
“Together, we will produce a reliable supply of high-quality, American-made steel that strengthens the nation’s industrial base, reduces our dependence on foreign supply chains, and supports economic resilience in our state and across the region,” she added.
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