Mesabi Metallics Company LLC, backed by the Essar Group, has entered into a new $520 million senior secured credit facility with Valor Mining Credit Partners II, LP, a dedicated mining and critical minerals credit fund managed by Breakwall Capital LP (Breakwall) in partnership with Vitol.
Located on over 16,000 acres in northern Minnesota, Mesabi Metallics is completing a $2.5 billion merchant Direct Reduction grade iron ore mine and pellet plant that will onshore a strategically important segment of the US steel supply chain.
With over 750 construction workers currently onsite, the project represents one of the largest private-sector industrial investments. Essar Group has already invested over $2 billion of equity into the project. The project has also received support from the US Export-Import Bank.
Joe Broking, President and CEO of Mesabi Metallics said the company will bring a new American source of the highest quality DR-grade iron ore that will help US steelmakers reduce reliance on imported raw materials and international supply chains.
The company will create hundreds of high-quality jobs in northern Minnesota for several decades to come and will support the reshoring of American industrial dominance, he added.