Mesabi Metallics Company LLC, backed by Essar Group, said it has secured $150 million in financing from Macquarie Group to support the planned Q3 2026 startup of its world-scale direct reduction (DR) grade iron ore mine and pellet project in Nashwauk, Minnesota.

The financing builds on Mesabi Metallics’ recently announced $520 million senior secured credit facility with Breakwall Capital, underscoring the momentum behind the project as it moves toward completion. The company said the funding package reflects growing confidence in the scale and strategic importance of the development.

Mesabi Metallics also said it has recently received support from the U.S. Export-Import Bank (EXIM), adding further weight to the project’s role in strengthening domestic industrial supply chains. The company framed the mine and pellet plant as a new American source of DR-grade iron ore at a time when U.S. manufacturers are looking to reduce reliance on imported raw materials.

Cost

Located on more than 16,000 acres in Northern Minnesota, the project is being completed at a total cost of $2.5 billion. Mesabi said the facility will supply the next generation of electric arc furnaces used in American steelmaking, which the company described as the cleanest and most energy-efficient way to produce high-quality steel.

Jobs

With more than 800 construction workers currently on site, Mesabi Metallics said the project is among the largest private-sector industrial investments in Minnesota’s history. The company added that Essar Group has already invested more than $2 billion in equity into the development.

“This financing from Macquarie marks another major step forward for Mesabi Metallics,” said Joe Broking, president and CEO of Mesabi Metallics, in the April 6 announcement. He said the transaction reinforces confidence in the quality, scale and strategic importance of the project.

The Mesabi Metallics DR-grade iron ore project in Minnesota—a leading U.S. iron ore-producing state—is considered strategically important, as it enhances domestic steel supply chains and supports U.S. industrial and manufacturing needs.

The recent financing and development milestones for the Direct Reduction (DR) grade iron ore mine and pellet plant in Nashwauk, Minnesota are worth noting, given the complexity of obtaining mining permits in the U.S. A clear example is the Rhyolite Ridge lithium-boron project in Nevada, which recently cleared a key legal hurdle after years of court challenges and regulatory review, allowing it to move toward construction.

Mesabi Metallics DR-Grade Iron Ore Project in Minnesota — Factsheet

Location

• Nashwauk, Minnesota, United States
• Over 16,000 acres in Northern Minnesota

Project Type

• Mining and mineral processing infrastructure
• DR-grade iron ore production for steel manufacturing

Total Project Value

• $2.5 billion

Latest Development (April 6, 2026)

• Secured $150 million financing from Macquarie Group
• Follows $520 million senior secured credit facility (Breakwall Capital)
• Additional backing from U.S. Export-Import Bank (EXIM)

Developer

• Mesabi Metallics Company LLC
• Backed by Essar Group

Construction Status

• Over 800 workers on site
• Advanced-stage construction

Timeline

• Targeted startup: Q3 2026

Strategic Importance

• Establishes a domestic U.S. source of DR-grade iron ore
• Supports:
  • Steel manufacturing
  • Infrastructure development
  • Automotive industry
  • Shipbuilding
  • Defense sector
• Reduces reliance on imported raw materials

End Use

• Supplies electric arc furnaces (EAFs)
• Enables production of:
  • High-quality steel
  • Lower-emission steel products

Investment Breakdown

• $2B+ equity already invested (Essar Group)
• Recent financing stack:
  • $150M (Macquarie Group)
  • $520M (Breakwall Capital)