Mesabi Metallics in 2026 spent nearly two decades as one of the Iron Range’s most stalled projects. In late September 2026 it became one of the biggest steel stories in the country. Mining has begun at its Nashwauk, Minnesota site, the state’s first new taconite mine and pellet plant in about 50 years. A day later, the company was at the White House announcing a much larger plan: a steel mill in Iowa. eciks
This guide covers what the company is, what it is building, who owns it, and what the history and current numbers suggest.
What Is Mesabi Metallics?
Mesabi Metallics is a Minnesota-based mining company, owned by India’s Essar Group, that is building an iron ore mine and pellet plant in Nashwauk and plans a large steel mill in Iowa.
The Nashwauk operation makes direct-reduction (DR) grade iron ore pellets. These are a premium feedstock for producing direct reduced iron (DRI), which feeds electric arc furnaces (EAFs). Most of the U.S. steel industry’s growth is in EAF steelmaking. The mine and pellet plant are a roughly $2.5 billion project. Other reports put the figure closer to $3 billion, which is consistent with cost growth over a long build. metal
How Did the Project Get Here?
The Nashwauk site has a long and messy backstory, and it explains why some Iron Range residents stayed skeptical until recently.
Construction began nearly 20 years ago and faced years of regulatory delays and financial challenges. The Minnesota DNR revoked the company’s state mineral leases in 2021 after it missed a key deadline, then awarded them in 2023 to Cleveland-Cliffs. The DNR’s decision was upheld in state courts, and the Court of Appeals later ruled that Mesabi lacked standing to challenge the 2023 award. Mesabi Metallics expected to start operations at Nashwauk site in Q3 of 2026 +2
The company kept building on the land it privately owns and later secured the financing to finish. The gap between the 2021 low point and the September 2026 launch is the core of this story.
Mining and Pelletization at Nashwauk
Here is how the operation works:
- Mining: crude taconite is blasted and hauled from the open pit.
- Concentrating: magnetic separation removes impurities.
- Pelletizing: the concentrate is rolled into pellets and hardened by heat.
- Shipping: pellets go by rail to steelmakers.
The company says the plant will produce 7 million metric tons of DR-grade pellets a year, with very low silica and alumina impurities. Low impurities matter because DRI-grade feed is what lets EAF steelmakers make high-quality steel without a blast furnace. metal
The mine’s first major blast came in mid-September. It was targeted for September 17 and aimed to dislodge an estimated 1.3 million tons of ore. Pellet production is expected within weeks. That is later than earlier targets: in June 2026, an outside investor with royalty exposure reported the project 95.5% complete, with commissioning of the first line targeted for July or August. This is normal for a project this large, but treat any date you see as a target. metalstocktitan
The Mesabi Metallics Iowa Steel Plant
The Iowa plant is a planned $15 billion steel complex in Lee County, in the state’s far southeast corner, announced at the White House on September 28, 2026.
The White House says the plant is expected to start making steel in 2030 and could eventually reach 10 million tons a year using DRI and electric arc furnaces. Iowa officials place the mill in Lee County, which borders the Mississippi River. The company calls the supply chain “mined, melted and poured” in the U.S. kttcmesabitribune
The reports disagree on some numbers, which is worth knowing before you cite any of them:
| Item | What reports say |
|---|---|
| Steel capacity | 7.5 million tons in a first phase, up to 10 million tons at full build-out |
| Construction jobs | Roughly 5,000 to 6,000 |
| Permanent jobs | At least 1,750 (company); more than 2,000 nationwide (White House) |
| Start date | 2030 target |
What Does the $18 Billion Figure Actually Mean?
The headline number combines two things. It pairs the $15 billion Iowa steel complex with the roughly $3 billion Nashwauk mine. It is not $18 billion of new money on top of what has already been spent. kttc
Financing so far has come from several sources. Recent Nashwauk funding includes a $520 million facility from a Breakwall Capital-managed fund and $150 million from Macquarie Group, along with U.S. Export-Import Bank support. A $770 million federal loan and a planned $5 billion expansion of the mine site were announced earlier in September. I did not find a published financing plan for the Iowa mill, so its funding is still an open question. northernnewsnowkaxe
The Planned Nashwauk HBI Plant
HBI stands for hot briquetted iron, a compacted form of DRI that is easier to ship and store.
The company says it still wants to expand mine capacity and build an HBI facility in Minnesota. CEO Joe Broking told Itasca County officials the company plans to submit state permits for a new iron plant in Nashwauk by the end of the year. That would move Nashwauk up the value chain from selling pellets to making iron. It is still at the permitting stage, so it is a plan rather than a construction project. wdiomprnews
Who Owns Mesabi Metallics?
Essar Group owns Mesabi Metallics. Essar is an Indian industrial conglomerate formed in 1969, with interests from energy and mining to technology and retail. Joe Broking is the CEO. Essar has said it has put more than $2 billion of equity into the project. New Iowa steel plant to take iron ore mined at Mesabi Metalics +2
I found no public stock listing for Mesabi Metallics itself. A Nasdaq-listed company, The Metals Royalty Company (TMCR), has said it holds royalty exposure to the project, which is a different thing from owning the company.
Latest News and Updates
- September 28, 2026: The Iowa steel plant was announced at the White House with President Trump and Iowa Governor Kim Reynolds.
- September 17, 2026: The first major blast at the Nashwauk mine, with federal officials in attendance.
- September 2026: The U.S. EXIM chairman visited the site as mining began. eciks
- June 2026: Mesabi announced about 200 new positions. northernnewsnow
- Local reaction: Some Minnesota lawmakers criticized the Iowa siting, arguing that permitting and tax policy pushed the steel jobs elsewhere. The company thanked state agencies for their work on the mine. mesabitribune
Project Timeline
| Date | Milestone |
|---|---|
| Mid-2000s | Nashwauk construction begins |
| 2021 | DNR terminates state mineral leases |
| 2023 | Leases awarded to Cleveland-Cliffs |
| 2025 | Mine reported about 80% complete |
| Spring 2026 | Breakwall and Macquarie financing |
| Sept. 17, 2026 | First major mine blast |
| Late 2026 | Pellet production expected; HBI permits planned |
| 2030 | Target for first Iowa steel |
My Take: What to Watch
The mine is real and operating. The Iowa mill is an announcement with a 2030 target, no disclosed financing, and a long permitting and construction path ahead. Three things will show whether it holds up:
- Pellet output: steady production at Nashwauk, and whether it reaches the 7 million ton design rate.
- Steel demand: the company says its pellets will sell out, but that depends on buyers and market conditions. The tariff environment currently favors domestic producers.
- Iowa financing and power supply: DRI-EAF steelmaking needs large amounts of electricity and natural gas.
6. Custom FAQ Section
Mesabi Metallics news: what is the latest?
Mining began at the Nashwauk site in September 2026, and on September 28 the company announced a $15 billion steel plant in Lee County, Iowa, with first steel targeted for 2030.
What is Mesabi Metallics Nashwauk?
It is the company’s iron ore mine and pellet plant on Minnesota’s Iron Range, designed to produce about 7 million metric tons of DR-grade pellets a year. It is the state’s first new taconite operation in about 50 years.
What is the link between Mesabi Metallics and Essar?
Essar Group is the Indian conglomerate that owns Mesabi Metallics. Essar has said it has invested more than $2 billion of equity in the project.
Who is the Mesabi Metallics owner?
Essar Group. Joe Broking is the company’s CEO.
Does Mesabi Metallics have jobs?
Yes. The company announced about 200 new positions in June 2026. Permanent mine staffing is planned to grow from about 200 to 350. The Iowa plant is projected to need about 6,000 construction workers and at least 1,750 permanent staff. Check the company’s official website for current openings.
Does Mesabi Metallics offer internships?
I could not verify a formal internship program. Ask the company directly or check its official careers page.
Has there been a Mesabi Metallics lawsuit?
Yes, several. Mesabi lost court challenges to the DNR’s 2021 lease termination and to the 2023 award of the leases to Cleveland-Cliffs. It also filed an antitrust suit against Cliffs in 2017, tied to the 2016 bankruptcy of Essar Steel Minnesota. I did not find a current status for that case.
What do Mesabi Metallics reviews say?
I found no verified independent employee or customer reviews. Public reaction is mixed: local officials welcome the mine and the jobs, while some Minnesota lawmakers are critical of the Iowa mill location.
- Read More…
