Essar Group-backed Mesabi Metallics has obtained $150m in funding from Macquarie Group for its iron ore mine and pellet plant in the US.
This financing supports the planned launch of the direct reduction (DR)-grade plant in Nashwauk, Minnesota, in the third quarter of 2026.
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The $2.5bn plant is set to supply next-generation electric arc furnaces (EAFs) for the US steelmaking sector.
Mesabi’s latest financing package builds on its previous $520m senior secured credit facility arrangement with Breakwall Capital, demonstrating significant progress for the project.
The US Export-Import Bank has recently extended support to Mesabi, highlighting the project’s increasing strategic significance for sectors including manufacturing, automotive, infrastructure, shipbuilding and defence.
The facility, which occupies more than 16,000 acres in northern Minnesota, represents a substantial new US source of DR-grade iron ore.
This initiative comes amid US efforts to bolster industrial supply chains and minimise reliance on imports for raw materials.
Mesabi Metallics president and CEO Joe Broking said: “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.
“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.”
The construction site currently comprises more than 800 workers.
Macquarie Group commodities and global markets business senior managing director Mike Burns said: “Macquarie has enjoyed a long-standing financing relationship with Essar Group, and we are pleased to extend that relationship to their metals and mining investments in the US.
“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.”
