According to media reports, the Minnesota Department of Natural Resources will legally prevent Essar Global from doing business in the state, since the Indian steel company has been missing deadlines and payments in its bid to build a new taconite iron ore mine and processing plant on the Iron Range.
In 2008, Essar Steel was going to build a new taconite iron ore mine in Nashwauk, Minnesota. However, the $2 billion-invested project could not be finished at the end of a ten-year period. After Essar declared bankruptcy three years ago, Mesabi Metallics assumed the project.
Department of Natural Resources commissioner Sarah Strommen said that the department is going to block Essar Steel and its affiliates from doing any business with the state. Strommen added, “Essar repeatedly failed to meet the construction and production milestones contained in the state mineral leases, failed to pay contractors, currently has approximately $64 million in unpaid debt to Itasca County and the state, and ultimately drove the project into bankruptcy.”
The department is currently investigating whether Mesabi Metallics is in full compliance with its permits and current mineral lease requirments, according to Strommen.