US President Donald Trump has announced a USD 18-billion investment by Indian multinational conglomerate Essar-backed Mesabi Metallics to establish a fully integrated American steel company, linking its iron ore mine in Minnesota with a proposed steel complex in Iowa, Essar said in a press release.
The announcement was made at the White House in the presence of Essar Group vice-chairman and founder Ravi Ruia and Mesabi Metallics chairman Rewant Ruia. US Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright, and US Export-Import Bank chairman John Jovanovic also attended the event, along with Iowa Governor Kim Reynolds, Senator Joni Ernst and Representatives Mariannette Miller-Meeks and Ashley Hinson.
The investment comprises a proposed $15 billion integrated steel complex in Iowa, alongside the $3 billion already invested in Mesabi Metallics’ iron ore mine and pelletising facility in Minnesota.
The press release noted that the project would be the largest single-location investment in an integrated steel complex in US history. It is expected to generate thousands of jobs across Minnesota and Iowa and create a domestic supply chain in which iron ore is mined, steel is melted, and finished products are produced in the US.
Mesabi Metallics recently opened what it described as the first new iron ore mine in the US in 50 years.
Iron ore mined in Minnesota
Mesabi Metallics’ mine is located in Nashwauk on Minnesota’s Mesabi Iron Range. Nearly $3 billion has been invested in the project so far.
The mine is expected to produce Patriot Pellet, a direct-reduction-grade iron ore pellet designed for use in modern electric arc furnace steelmaking. The company said the product will form the first stage of a domestic mine-to-mill supply chain, with the Minnesota ore feeding directly into the planned Iowa steel complex.
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More than 1,500 construction workers are currently working at the mine, alongside more than 200 full-time employees. Once fully operational, the mine is expected to employ about 350 full-time workers.
$15 billion Iowa steel complex
Mesabi Metallics plans to invest $15 billion in the new Iowa complex, which is expected to create more than 8,000 construction jobs, the press release stated. The project will also use local suppliers and businesses, potentially generating additional employment across the region.
Once operational, the facility is expected to employ at least 1,750 full-time workers.
Focus on lower-emission steelmaking
The Iowa complex will use direct-reduced iron (DRI) and electric arc furnace (EAF) technologies, which the company says will reduce energy consumption and emissions compared with conventional coal-fired blast furnaces.
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Under the DRI process, oxygen is removed from Minnesota-mined iron ore at temperatures below its melting point to produce solid metallic iron. The hot DRI can then be fed directly into an electric arc furnace, reducing the energy needed for melting.
The EAFs will use a combination of hot DRI produced at the facility and scrap steel. Essar said this approach will allow Mesabi Metallics to manufacture steel more efficiently while reducing energy use and emissions.
The company aims to combine Minnesota’s domestic iron ore resources with modern steelmaking in Iowa to create a fully domestic supply chain for finished steel.
Building a domestic steel supply chain
US steelmakers generally rely on either integrated blast furnace facilities that use iron ore or electric arc furnaces that primarily recycle scrap while also using imported iron.
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Mesabi Metallics plans to combine the two approaches by supplying its Iowa EAF operations with iron ore produced at its own Minnesota mine.
Essar said the integrated model is intended to provide a domestic source of critical raw materials for the US steel industry, infrastructure, shipbuilding, defence manufacturing and other industrial sectors.
