Mesabi Metallics Secures $150 Mn From Macquarie For Minnesota Iron Ore Project

Mesabi Metallics Company LLC, an Essar Group company, has secured $150 million in financing from Macquarie Group to support the planned third-quarter 2026 startup of its Direct Reduction (DR) grade iron ore mine and pellet plant in Minnesota.

The latest funding follows a previously announced $520 million senior secured credit facility from Breakwall Capital, adding to a series of financing moves for the project, which has also received backing from the US Export-Import Bank, the company said in a statement.

Mesabi Metallics is developing the project on more than 16,000 acres in northern Minnesota, aiming to establish a domestic source of DR-grade iron ore as the United States seeks to strengthen industrial supply chains and reduce reliance on imports.

The company is investing about $2.5 billion in the mine and pellet plant, which is expected to supply electric arc furnace steelmakers. More than 800 construction workers are currently on site, with Essar having invested over $2 billion in equity so far.

"This financing from Macquarie marks another major step forward for Mesabi Metallics and builds on the strong momentum we have established with our recently announced financial partnerships," said Joe Broking, president and chief executive of Mesabi Metallics. "Together, these transactions reflect growing confidence in the quality, scale and strategic importance of our project as we build a new American source of DR-grade iron ore to strengthen domestic steel supply chains and reduce dependence on imports." "Macquarie has enjoyed a longstanding financing relationship with Essar Group, and we are pleased to extend that relationship to their metals and mining investments in the US," said Mike Burns, senior managing director in Macquarie's commodities and global markets business. "Mesabi is developing a high-quality and strategically important project for the US steel sector, and we look forward to supporting the company over the long term." Once completed, the facility will be the first new mine and pellet plant in Minnesota in nearly 50 years and is expected to supply DR-grade pellets to the growing electric arc furnace steel market in the United States.