Mesabi Metallics Secures Funding for New Steel Plant

Essar Group-backed company raises $150 million from Macquarie Group to launch new Minnesota iron ore mine and pellet plant.

Apr. 8, 2026 at 12:00am

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A highly detailed, photorealistic studio still-life image of a polished, geometric steel ingot or pellet sample resting on a clean, monochromatic background, symbolizing the advanced metallurgy and precision engineering behind modern steel production.A new $150 million investment will help fund a state-of-the-art iron ore processing facility in Minnesota, supporting the transition to cleaner steel production.Nashwauk Today

Mesabi Metallics, a company backed by India's Essar Group, has secured $150 million in financing from Macquarie Group to support the Q3 2026 startup of its world-scale Direct Reduction (DR) grade iron ore mine and pellet plant in Nashwauk, Minnesota. This funding follows Mesabi's recent announcement of a $520 million senior secured credit facility.

Why it matters

The new Mesabi Metallics facility will help meet growing global demand for high-grade iron ore pellets used in direct reduced iron (DRI) and electric arc furnace (EAF) steel production. This investment signals confidence in the long-term viability of the Mesabi Iron Range region, which has historically been a major U.S. steel production hub.

The details

Mesabi Metallics plans to extract and process DR-grade iron ore from its mine in Nashwauk, Minnesota, converting it into high-quality pellets for use in DRI and EAF steel mills. The $150 million in financing from Macquarie Group, combined with the previously announced $520 million credit facility, will provide the necessary capital to complete construction and launch operations at the new facility.

  • Mesabi Metallics expects to begin operations at the new Minnesota facility in Q3 2026.
  • The company recently announced a $520 million senior secured credit facility.

The players

Mesabi Metallics

A company backed by India's Essar Group that is developing a world-scale Direct Reduction (DR) grade iron ore mine and pellet plant in Nashwauk, Minnesota.

Essar Group

An Indian conglomerate that owns a majority stake in Mesabi Metallics and is providing backing for the new Minnesota steel plant project.

Macquarie Group

An Australian financial services group that has provided $150 million in financing to support the startup of Mesabi Metallics' new iron ore facility.

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What’s next

Mesabi Metallics plans to begin operations at its new Minnesota iron ore mine and pellet plant in Q3 2026.

The takeaway

This investment in Mesabi Metallics' new facility signals confidence in the long-term future of the Mesabi Iron Range region as a strategic hub for high-grade steel production to meet global demand.