Company behind proposed Iowa steel plant filed for bankruptcy in 2016

Steel News  |  2026-10-02 00:31:59   |   By

The company emerged from bankruptcy in 2017 as Mesabi Metallics and remained under Essar Group’s ownership.

SEATTLE (Scrap Monster): Iowans and state lawmakers are seeking more information about the company planning to build what the White House says would be the largest steel plant in U.S. history.

Mesabi Metallics announced it would invest $15 billion in a steel mill in Lee County in southeastern Iowa. The company said the project would employ at least 1,750 full-time workers and create more than 6,000 construction jobs.

The announcement has also drawn attention to the company’s financial history in neighboring Minnesota.

Mesabi Metallics is based in Minnesota and owned by Essar Group, an Indian conglomerate. The company is developing a multibillion-dollar iron ore mine in northeastern Minnesota.

In 2008, Essar Steel Minnesota planned to build a taconite mine, a direct-reduction-grade iron ore pellet plant, and a steel mill in Minnesota, according to the Minnesota Department of Employment and Economic Development, known as DEED.

The company filed for bankruptcy in 2016 before completing the taconite plant. Court records showed it owed more than $1 billion.

The company emerged from bankruptcy in 2017 as Mesabi Metallics and remained under Essar Group’s ownership.

Mesabi Metallics is now repaying money it received from Minnesota for the earlier project. A Minnesota DEED spokesperson said the company has repaid about $49 million of what was originally a $65 million grant. With interest, the total amount due rose to about $71 million.

The company still owes approximately $21 million, according to Minnesota DEED, which also says Mesabi Metallics has made annual payments for the past six years.

A Mesabi Metallics spokesperson said the company has made every required payment on schedule and will continue to do so. The company also said that despite its previous delays and bankruptcy, it is now in a “strong financial position.”

The company noted it recently completed a $3 billion investment in Minnesota to open the first new iron ore mine built in the country in 50 years. The mine is set to produce Mesabi Metallics’ direct-reduction-grade iron ore pellets.

According to the company, the construction of the site gave more than 1,500 construction jobs. Mesabi Metallics also says there are more than 200 full-time employees already working at the mine, and the plan is to have a total of 350 full-time jobs once the mine is fully operational.

The company also tells KCCI it feels confident that it will be able to successfully complete the project.

Iowa lawmakers and other state leaders attended the project’s announcement Monday at the White House.

Courtesy: www.kcci.com