Mesabi Metallics has secured US$150 million ($216.8 million) of financing from Macquarie Group (ASX:MQG) for its Direct Reduction grade iron ore mine and pellet plant in Minnesota, US.
Mesabi will use the new funds to start up the mine and plant during the third quarter of 2026. These operations will reduce dependence on steel imports and supply next-generation electric arc furnaces for American steelmaking, which are touted to be cleaner and more energy efficient.
The financing is in addition to the US$2 billion ($2.8 billion) that Essar Group invested as well as a further US$520 million ($751.7 million) senior secured credit facility from Breakwall Capital.
More than 800 construction workers have been mobilised.
“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,” Mesabi President and CEO Joe Broking says.
“Macquarie has enjoyed a longstanding financing relationship with Essar Group… and we look forward to supporting the company over the long term,” Macquarie Group’s Commodities and Global Markets Senior Managing Director Mike Burns adds.
Mesabi Metallics is a sustainable iron ore and steel producer with assets mostly in the US.
Write to Richard Szabo at Mining.com.au
Images: Mesabi Metallics
