The Export-Import Bank of the United States (EXIM) has announced support for a major iron ore mining and processing project led by Mesabi Metallics, part of India’s Essar Group, as part of a broader initiative to strengthen US supply chain security.
The support, valued at up to $10 billion, forms part of nearly $30 billion in strategic deals aimed at reinforcing cooperation with Indo-Pacific partners.
Focus on strengthening steel supply chain
A key component of the initiative is enhancing the resilience of the US steel supply chain.
The Mesabi Metallics project, located on Minnesota’s Mesabi Iron Range, is expected to play a critical role by increasing domestic production of high-grade iron ore used in steelmaking. Once operational, the facility is expected to produce approximately 7 million ton of direct-reduction (DR) grade iron ore pellets annually.
These pellets are a key raw material for low-carbon steel production, particularly in electric arc furnace-based processes, supporting the transition toward cleaner steelmaking in the US.
The project is expected to commence operations this year and create hundreds of jobs, contributing to regional economic development. At the same time, it will expand US industrial capacity.
Strategic cooperation with India
The investment also reflects deeper industrial cooperation between the US and India.
By supporting projects such as Mesabi Metallics, EXIM aims to strengthen collaboration on energy, minerals and industrial supply chains while enhancing long-term economic and strategic ties between the two countries.
