US EXIM Bank Supports Mesabi Metallics Iron Ore Project to the Tune of $10B

At the Indo-Pacific Energy Security Ministerial (#IPEM2026), US EXIM Bank announced its support for the iron ore mining and processing facility project by Mesabi Metallics. The Project is located at Nashwauk in the state of Minnesota.

Essar Steel of India got involved in the Project since the 2000s. But the Project stalled due to a lack of financing. During the 2020s, the Project was rebranded as Mesabi Metallics and recapitalized with a restructuring in ownership. Construction restarted in 2023 and is now 75% complete. First production is now scheduled for 2Q26. Essar has already injected USD 1.8 billion into the Project and plans to invest an additional USD 500 million to complete the project.

The Mesabi Iron Range has an estimated reserve of 1.3 billion tonnes of #iron ore spread over about 16,000 acres. Mesabi Metallics plans to produce 7 million tonnes of Direct Reduction-Grade iron ore pellets annually.

The Project has earned its GreenSteel through the adoption of Electric Arc Furnace (EAF), rather than the traditional Blast Furnace. The Electric Furnace outputs iron pellets that have higher purity than the ones coming out of the Blast Furnace, which can be used as feedstock for low-carbon steelmaking.

In terms of economic impact, it will bring steelmaking back domestically as per Trump’s #AmericaFirst policy, which places a high tax burden on imported steel and aluminum. In terms of jobs for the local economy, it will create 600 jobs during the construction phase and support 350 jobs directly when operational. Another 700 jobs will benefit indirectly from the Project.