Mesabi Metallics Company LLC, supported by Essar Group, has secured $150 million in financing from Macquarie Group to advance its direct reduction (DR) grade iron ore project in Nashwauk, Minnesota. The funding will support the planned startup of its large-scale mine and pellet plant in the third quarter of 2026.
This latest financing follows the company’s recently announced $520 million senior secured credit facility with Breakwall Capital, further strengthening the financial foundation of the project. Mesabi Metallics has also received backing from the U.S. Export-Import Bank, highlighting the project’s strategic relevance to key industries such as manufacturing, infrastructure, automotive, shipbuilding, and defence.
The project is designed to establish a reliable domestic source of DR-grade iron ore, a critical input for electric arc furnace (EAF) steelmaking. EAF technology is widely recognized as one of the most energy-efficient and environmentally sustainable methods of producing high-quality steel.
Located across more than 16,000 acres in northern Minnesota, the development represents a total investment of approximately $2.5 billion. Once operational, the facility will supply raw materials to support the next generation of American steel production while reducing reliance on imports.
Currently employing over 800 construction workers, the project stands among the largest private industrial investments in Minnesota’s history. Essar Group has already committed more than $2 billion in equity toward its development.
Joe Broking, President and CEO of Mesabi Metallics, stated that the financing from Macquarie reflects growing confidence in the scale, quality, and strategic importance of the project. He noted that the initiative plays a vital role in strengthening domestic supply chains and supporting the long-term resilience of the U.S. steel industry.
Mike Burns, Senior Managing Director at Macquarie Group, highlighted the firm’s longstanding relationship with Essar and expressed confidence in the project’s potential to contribute meaningfully to the U.S. metals and mining sector. With strong financial backing and continued institutional support, Mesabi Metallics is progressing steadily toward commissioning a project that is expected to play a transformative role in sustainable steel production and industrial self-reliance in the United States.
