US-based Mesabi Metallics Company, part of India’s Essar Group, has secured a $520 million senior secured credit facility from Breakwall Capital and Valor Mining Credit Partners II, in partnership with Vitol, as it moves toward commercial operations in the third quarter of the year.
Strategic DR-grade iron ore project in Minnesota
The project, located across more than 16,000 acres in northern Minnesota, involves the development of a $2.5 billion merchant direct reduction-grade iron ore mine and pellet plant.
The facility is expected to play a key role in strengthening the domestic US steel supply chain by supplying high-quality raw materials for electric arc furnace-based steel production.
Essar Group has already invested over $2 billion in equity into the project. Additional support has also been provided by the Export-Import Bank of the United States, underlining the project’s strategic importance for key sectors such as automotive, infrastructure, shipbuilding and defense, as SteelOrbis reported previously.
Supporting EAF steelmaking and supply chain security
Mesabi Metallics CEO Joe Broking stated that the project will introduce a new domestic source of DR-grade iron ore, helping US steelmakers reduce reliance on imports and global supply chains. He also emphasized that electric arc furnace-based steelmaking offers a cleaner and more energy-efficient production route.
Economic impact and long-term potential
The project is expected to create hundreds of long-term jobs and contribute to the reshoring of industrial capacity in the US. Breakwall’s managing partner Daniel Flannery highlighted the project’s scale, long-life resource base and its strategic importance for industrial development.
