Mesabi Metallics Secures Funding for New Steel Plant

Mesabi Metallics, backed by Essar Group, has secured $150 million of financing from Macquarie Group, supporting the Q3 2026 startup of its world-scale Direct Reduction (DR) grade iron ore mine and pellet plant in Nashwauk, Minnesota.

The financing follows Mesabi's recently announced $520 million senior secured credit facility with Breakwall Capital, further reinforcing the strong momentum behind the project.

Mesabi has also recently received support from the U.S. Export-Import Bank (EXIM), reflecting the project's growing strategic importance to U.S. manufacturing, infrastructure, automotive, shipbuilding and defense.

Mesabi Metallics is building a strategically important new American source of DR-grade iron ore at a time when the United States is working to strengthen industrial supply chains and reduce reliance on imported raw materials.

Located on more than 16,000 acres in Northern Minnesota, the plant will supply steel in the cleanest and most energy efficient way, says the company.

With more than 800 construction workers currently on site, the project is one of the largest private-sector industrial investments in Minnesota's history. Essar Group has already invested more than $2 billion of equity into the project.