US based Mesabi Metallics announced Monday at the White House that it will build a fully integrated steel company, with a plant in Iowa for a total $18 billion investment to bring its iron ore operations and new steel making together. $3 billion will be invested in completing the iron ore mine in Minnesota, while $15 billion will be dedicated to the plant.
The company says it will create 6,000 jobs during construction, employ at east 1,750 full time employees, and will create an economic output of $95 million in the first 10 years. And once production starts, the plant will produce 7.5 million tons of steel per year.
US Commerce Secretary Howard Lutnick said the Iowa plant will not receive direct federal support, but the board of the Export-Import Bank of the United States (EXIM) approved a $770 million direct loan to Mesabi Metallics for its Minnesota mine.
Joe Broking, chief executive officer for Mesabi Metallics was quoted by media as saying, “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 to supply the high-quality, all-American steel that our national defense, cars and trucks, shipbuilding, household appliances, energy and infrastructure depend on.”
Mesabi Metallics is a Minnesota based iron ore producer backed by India's Essar Group.
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