Iowa governor candidates debate incentives for planned steel mill

SEATTLE (Scrap Monster): The planned steel mill in southeastern Iowa has become an issue in the state’s race for governor, after Iowa lawmakers approved incentives for the project last week.

Mesabi Metallics plans to build the mill in Lee County to process ore mined in Nashwauk, Minnesota. Iowa’s incentives could cover more than $1 billion of the project’s $15 billion cost.

The debate follows Essar Steel’s decision to drop plans in 2015 to process steel in Minnesota. Democratic candidate Rob Sand cited that project as a cautionary tale.

“We want to make sure, for example, that what happened in Minnesota doesn’t happen here,” Sand said. “We don’t want a lot of upfront incentives. Instead, we should make sure that this company is making the investments, improving the infrastructure in Iowa, actually building here, and after meeting benchmarks, then seeing incentives come in after that.”

Republican candidate Zach Lahn said incentives should come after the project is completed and workers are employed.

“No incentive given until after the project is done, after people are employed,” Lahn said. “We want these projects here. We can’t sit on the fence. We can’t sit on the sideline. We have to prioritize economic growth in the state. We have to be prioritizing our rural communities as well, which this project does.”