Nashwauk, MN, Apr 06: Mesabi Metallics Company LLC, backed by Essar Group, has announced the successful securing of $150 million in financing from Macquarie Group. The funding will support the planned Q3 2026 startup of its world-scale Direct Reduction (DR) grade iron ore mine and pellet plant in Nashwauk, Minnesota.
This latest financing follows the company’s previously announced $520 million senior secured credit facility with Breakwall Capital, further strengthening financial backing for the project. Additionally, support from the U.S. Export-Import Bank highlights the project’s growing strategic importance to key sectors such as manufacturing, infrastructure, automotive, shipbuilding, and defense in the United States.
Spanning over 16,000 acres in northern Minnesota, the $2.5 billion project is set to become a major domestic source of DR-grade iron ore, a critical input for next-generation electric arc furnace steelmaking—considered one of the most energy-efficient and environmentally sustainable methods of producing high-quality steel.
Currently employing more than 800 construction workers, the development stands as one of the largest private-sector industrial investments in Minnesota’s history. To date, Essar Group has invested over $2 billion in equity into the project.
Commenting on the development, Joe Broking, President and CEO of Mesabi Metallics, said,
“This financing from Macquarie marks another significant milestone and reflects strong confidence in the scale and strategic importance of our project. We are building a new American source of DR-grade iron ore to strengthen domestic steel supply chains and reduce reliance on imports.”
Mike Burns, Senior Managing Director at Macquarie Group, added,
“We are pleased to extend our longstanding relationship with Essar Group to support this high-quality and strategically important project for the U.S. steel sector.”
With robust financial backing and strategic relevance, Mesabi Metallics is well-positioned to contribute significantly to strengthening U.S. industrial supply chains while advancing sustainable steel production.
