US-based Mesabi Metallics Company, part of India’s Essar Group, has announced that it has secured $150 million in financing from Australian multinational investment banking and financial services group Macquarie Group, supporting the development of its direct reduction (DR)-grade iron ore project in Minnesota.
The funding will contribute to the planned startup of the company’s mine and pellet plant in the third quarter of this year, reinforcing momentum behind the project.
The $150 million financing follows a previously reported $520 million senior secured credit facility from Breakwall Capital and Valor Mining Credit Partners II, highlighting continued financial backing for the project.
The facility is designed to supply high-quality DR-grade pellets for electric arc furnace steel production, supporting cleaner steelmaking processes.
Key role in US steel supply chain
Mesabi Metallics is developing a new domestic source of DR-grade iron ore at a time when the United States is seeking to:
- strengthen industrial supply chains,
- reduce reliance on imported raw materials,
- support sectors such as manufacturing, infrastructure and defense.
The project is expected to supply the next generation of electric arc furnaces, which are widely used in low-emission steel production.
Once completed, it will be the first new iron ore mine and pellet plant in Minnesota in nearly 50 years.