Latest financing builds on recent capital momentum for structurally important American iron ore project

NASHWAUK, Minn., April 6, 2026 /PRNewswire/ -- Mesabi Metallics Company LLC (Mesabi Metallics), backed by Essar Group, today announced that it has secured $150 million of financing from Macquarie Group, supporting the Q3 2026 startup of its world-scale Direct Reduction (DR) grade iron ore mine and pellet plant in Nashwauk, Minnesota.

The financing follows Mesabi's recently announced $520 million senior secured credit facility with Breakwall Capital, further reinforcing the strong momentum behind the project.

Mesabi has also recently received support from the U.S. Export-Import Bank (EXIM), reflecting the project's growing strategic importance to U.S. manufacturing, infrastructure, automotive, shipbuilding and defense.

Mesabi Metallics is building a strategically important new American source of DR-grade iron ore at a time when the United States is working to strengthen industrial supply chains and reduce reliance on imported raw materials.

Located on more than 16,000 acres in Northern Minnesota, Mesabi Metallics is completing a $2.5 billion world-scale merchant DR-grade iron ore mine and pellet plant that will supply the next generation electric arc furnaces of American steelmaking- the cleanest and most energy efficient way of making high quality steel.

With more than 800 construction workers currently on site, the project is one of the largest private-sector industrial investments in Minnesota's history. Essar Group has already invested more than $2 billion of equity into the project.

"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," said Joe Broking, President and CEO of Mesabi Metallics. "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."

"Macquarie has enjoyed a longstanding financing relationship with Essar Group, and we are pleased to extend that relationship to their metals and mining investments in the US," said Mike Burns, Senior Managing Director in Macquarie Group's Commodities and Global Markets business. "Mesabi is developing a high-quality and strategically important project for the U.S. steel sector, and we look forward to supporting the company over the long term."

About Mesabi Metallics Company LLC 

Mesabi Metallics Company LLC, an Essar Group company, is constructing a state-of-the-art mine and Direct Reduction (DR) grade iron ore pellet plant to produce premium DR grade pellets on over 16,000 acres in Nashwauk, Minnesota. Once completed, it will be the first new mine and pellet plant in Minnesota in almost 50 years. Mesabi's DR grade iron ore pellets will be strategically positioned to meet the demand of the Electric Arc Furnace market, ensuring supply chain security for DR grade iron pellets in the United States and replacing foreign imported pellets. The endeavor is one of the largest private sector investments in Minnesota. Mesabi Metallics has already invested over $2.2 billion into the project.

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