Essar Steel Born Again in the US as Mesabi Metallics Thanks to $18B Mine-to-Mill Project
On 28 September 2026, US President Trump invited Ravi Ruia, Founder of Essar Group and Rewant Ruia, Chair of Mesabi Metallics to announce that the Essar Group is investing USD 18 billion in a fully integrated steel supply chain in the USA. Trump hailed the deal as the ‘largest steel plant in American history’ and the first iron ore mine to open in the US in more than half a century. Mesabi Metallics is a fully-owned subsidiary of India’s Essar Group in the USA and takes its name from the location of the mine in the Mesabi Iron Range in Minnesota.
By integrated, the project will undertake the full cycle from mine to mill. First, the Minnesota Mine, located in the Nashwauk, will first extract and convert the iron ore into high-grade pellets, dubbed Patriot Pellets in accordance to the #AmericaFirst policy. Then, the Iowa Steel Complex, located in Lee County, will transform the Patriot Pellets into various steels based on market demand.
“This is a defining moment for American steel and a transformative milestone for Mesabi Metallics. 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 create thousands of jobs, strengthen domestic steelmaking capacity and establish Mesabi Metallics as a major force in America’s steel industry.”
Mesabi Metallics Chair Rewant Ruia
The steel mill is designed to output 7.5 million tonnes annually upon completing Phase One by 2030. Actually, the mill can augment its capacity up to 10 million tonnes annually. The furnace will utilize the latest electric arc technology to reduce energy consumption and greenhouse gas emissions. During construction, the Project will employ between 6,000 and 8,000 persons. Once operational, the mine and mill will sustain nearly 2,000 permanent jobs.
For the Ruia family, who owns the Essar Group, this Project seems is like the phoenix reborn from its ashes. In 2019, Essar Group had to liquidate its flagship Essar Steel company in India to ArcelorMittal and Nippon Steel as a first test of the newly enacted Insolvency and Bankruptcy Code. Some allegations emerged that the Russian oligarchy is bankrolling Essar and the Mesabi project might warrant closer scrutiny.
The suspicion did not deter Trump from proclaiming the Project as yet another feather in his cap by reshoring strategic manufacturing back onto American soil. In particular, he attributed the key success factor to his 50% tariff on imported steel, forcing steel makers to operate within the US.