Mesabi Metallics Secures $520M for Minnesota DRI Project

The funding will help the company advance its direct-reduced iron ore mine and pellet plant in northern Minnesota.

Apr. 6, 2026 at 2:49am

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Mesabi Metallics, a Minnesota-based iron ore company, has secured a $520 million senior secured credit facility from Breakwall Capital LP and Vitol to fund its direct-reduced iron (DRI) project in Nashwauk, Minnesota. The project, which has already received over $2 billion in investment from the Essar Group, is nearing commercial operations and will provide a new domestic source of high-quality DRI-grade iron ore to U.S. steelmakers.

Why it matters

The Mesabi Metallics project is strategically important for onshoring a critical segment of the U.S. steel supply chain, reducing reliance on imported raw materials. The DRI produced will compete with recycled steel as feedstock for the growing electric arc furnace (EAF) steelmaking sector, which is the cleanest and most energy-efficient way of making steel.

The details

Mesabi Metallics is completing a $2.5 billion world-scale merchant direct reduction (DR)-grade iron ore mine and pellet plant on more than 16,000 acres in northern Minnesota. The company says the project will help U.S. steelmakers reduce reliance on imported raw materials and international supply chains. Currently, more than 750 construction workers are onsite as the company advances toward reaching commercial operations scale in the third quarter of this year.

  • Mesabi Metallics expects to reach commercial operations scale in the third quarter of 2026.
  • Essar Group has already invested more than $2 billion into the project.

The players

Mesabi Metallics Co. LLC

A Minnesota-based iron ore company developing a $2.5 billion direct-reduced iron (DRI) mine and pellet plant project in Nashwauk, Minnesota.

Breakwall Capital LP

A Houston, New York, and Rhode Island-based energy specialist fund that has agreed to provide up to $520 million in senior secured credit to fund the Mesabi Metallics project.

Vitol

A multinational commodities firm that is partnering with Breakwall Capital on the Mesabi Metallics credit facility.

Essar Group

A Mumbai-based conglomerate that has already invested more than $2 billion into the Mesabi Metallics project.

Joe Broking

The president and CEO of Mesabi Metallics.

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What they’re saying

“The partnership with Breakwall is an important milestone for Mesabi Metallics. We are bringing to market a brand new American source of the highest quality DR-grade iron ore that will help U.S. steelmakers reduce reliance on imported raw materials and international supply chains.”

— Joe Broking, President and CEO, Mesabi Metallics

“America is already the global leader in next generation electric arc furnace (EAF)-based steelmaking: the cleanest and most energy efficient way of making steel.”

— Joe Broking, President and CEO, Mesabi Metallics

What’s next

Mesabi Metallics expects to reach commercial operations scale at its DRI-grade iron ore mine and pellet plant in northern Minnesota in the third quarter of 2026.

The takeaway

The Mesabi Metallics project represents a significant step in onshoring a critical segment of the U.S. steel supply chain, reducing reliance on imported raw materials. The DRI produced will help feed the growing electric arc furnace steelmaking sector, which is the cleanest and most energy-efficient way of making steel.