The Arkansas Economic Development Commission announced Tuesday that Big River Steel, LLC will build a more than $1 billion steel mill in Mississippi County, Arkansas that will employ about 500 people.
The plans are contingent on approval by the legislature authorizing the state to issue $125 million in general obligation bonds under the authority of Amendment 82 and all necessary regulatory approvals. As required by the Amendment, Arkansas Governor Mike Beebe will be referring the project to the legislature for its consideration. This is the first time Amendment 82 has been triggered since its adoption during the November 2004 general election. It allows the state legislature to approve up to 5 percent of the state's general revenue budget to be used for bonding of super economic development projects.
John Correnti is Big River Steel's chief executive officer and heads a group of investors backing the project. Big River will produce steel for the automotive, oil and gas and electrical energy industries. Construction of the mill will take approximately 20 months from groundbreaking which is expected later this year. John Correnti has also previously served as president and CEO of Nucor Corporation.
The $125 million generated by the sale of the bonds will be used as follows:
- $50 million loan to Big River Steel
- $50 million for site preparation
- $20 million for costs associated with piling - subsurface stabilization
- $5 million bond issuance cost