Essar group company Mesabi Metallics will set up a $15-billion steel plant in the US state of Iowa, integrating it with the company’s iron ore mine and pelletising facility in Minnesota, where it has already invested $3 billion.
The investment announcement was made by US President Donald Trump on Monday evening at the White House, in the presence of Essar group leadership, including founder and vice-chairman Ravi Ruia and Rewant Ruia, chairman of Mesabi Metallics.
This is the second such announcement by Trump involving an Indian company after he said in March that Reliance would build the US’s largest oil refinery at the Port of Brownsville in Texas with an investment of at least $60 billion and a capacity of 168,000 barrels per day. Reliance has neither acknowledged nor denied the announcement, or informed the stock exchanges about it.
The Essar group said on Tuesday that the proposed investment includes a $15-billion integrated steel complex in Iowa, in addition to its existing $3-billion investment in the iron ore mine and pelletising facility in Minnesota.
“The project represents the largest single-location investment in an integrated steel complex in American history and is expected to transform American steelmaking by establishing a fully integrated, 100% American steel supply chain, with iron ore mined, steel melted and finished products supplied to the US market,” the statement said.
Mesabi Metallics recently opened the first new iron ore mine in the United States in 50 years.
“This investment marks a new chapter in Essar’s global journey and carries forward the vision of my brother, Shashi Ruia, to build world-class businesses with a global footprint. With over three decades of experience across the steel value chain, Essar is proud to bring that expertise to this landmark investment,” Ravi Ruia said.
“We are building a fully integrated steel business from the ground up, connecting Minnesota’s world-class iron ore resources with steelmaking in Iowa to produce 100% American steel. This investment will establish Mesabi Metallics as a major force in America’s steel industry,” Rewant Ruia said.
Mesabi Metallics’ iron ore mine on Minnesota’s Mesabi Iron Range is the first new iron ore mine built in the US in 50 years, with nearly $3 billion invested to date. Located in Nashwauk, Minnesota, the mine will produce Patriot Pellet, the company’s direct-reduction-grade (DR-grade) iron ore pellet engineered for modern electric arc furnace steelmaking.