Essar Group-backed Mesabi Metallics has announced a $18bn (Rs1.73tn) investment to establish a fully integrated steel operation, combining its iron ore mine on the Mesabi Iron Range in Minnesota with a proposed steel-making complex in Iowa, US.

The company revealed details of the project during an event at the White House.

Of the total, $3bn is earmarked for completing the iron ore mine in Nashwauk, while $15bn is allocated to the development of the new Iowa steel complex.

The project aims to create more than 8,000 jobs, including in excess of 6,000 construction roles for the Iowa complex and 1,750 permanent positions at full operation.

More than 1,500 construction workers and 200 full-time employees are currently on-site in Nashwauk, with plans to reach 350 permanent roles once the mine becomes fully operational.

Mesabi CEO Joe Broking said: “This is a major moment for US-made steel, combining the highest quality direct-reduction grade iron ore pellet from Minnesota’s Iron Range with the most advanced DRI [direct reduced iron] to EAF [electric arc furnace] steel-making technology in Iowa to supply the high-quality, all-American steel that our national defence, cars and trucks, shipbuilding, household appliances, energy and infrastructure depend on.”

The Nashwauk operation, situated on the Mesabi Iron Range, is said to be the first new iron ore mine constructed in the US in 50 years.

Iron ore sourced from the Minnesota site will be used to manufacture direct-reduction-grade iron ore pellets, called ‘Patriot Pellets’, intended for use in the Iowa steel facility’s production process.

At the Iowa complex, EAFs will be fed with a combination of hot, freshly reduced iron from the plant's own direct-reduction process and scrap steel.

By using iron ore that has had its oxygen removed at temperatures below melting point and feeding the resulting metallic iron into the furnaces while still hot, the process is designed to cut energy consumption and lower emissions compared with conventional blast furnace methods.

The company estimated that over the construction period and the first ten years of full operations, the investment would produce $95bn in total economic output across the region.

According to Mesabi, this integrated approach aims to develop a fully domestic steel supply chain, with all major production steps based in the US.

In April 2026, Mesabi obtained $150m in funding from the Macquarie Group for its iron ore mine and pellet plant in the US.