Geneva, Switzerland-based Mercuria Energy Group, one of the world's largest independent energy and commodities groups, has announced that it has signed a memorandum of understanding (MOU) with US-based investor group Chippewa Capital Partners (CCP) to acquire a majority stake in the US-based iron ore producer Mesabi Metallics Company (formerly known as Essar Steel Minnesota LLC), which is currently 100 percent owned by CCP.
As part of the agreement, Mercuria will be backing the re-emergence of Mesabi Metallics. The transaction aims to strengthen the $650 million financing package for completion of the seven-million-mt-per-year iron ore and pelletization project of Mesabi Metallics (the Mesabi Project). However, the amount of the investment to be made by Mercuria is not disclosed.
According to Mercuria, the investment is intended to support the creation of new long-term jobs in America’s heartland and the century-old iron ore mining district, the Mesabi Range in Minnesota. Mercuria’s backing and investment in Mesabi Metallics is expected to lead to an acceleration of the engineering, procurement and construction of the Mesabi Project.