Mesabi Metallics Company announced that it has secured $150 million in financing from Macquarie Group, supporting the planned Q3 2026 startup of its direct reduction grade iron ore mine and pellet plant in Nashwauk, Minnesota. The funding adds to the company’s recent capital momentum as it advances one of the largest industrial projects in the region.
The latest financing follows a previously announced $520 million senior secured credit facility, reinforcing continued investor confidence in the project’s scale and strategic importance. Mesabi has also received backing from the U.S. Export-Import Bank, highlighting the initiative’s relevance to domestic manufacturing, infrastructure, automotive, shipbuilding, and defense sectors.
The company is developing a new domestic source of direct reduction grade iron ore at a time when the United States is focused on strengthening industrial supply chains and reducing dependence on imported raw materials. The project spans more than 16,000 acres in northern Minnesota and represents a $2.5 billion investment aimed at supplying next-generation electric arc furnaces used in steelmaking.
With more than 800 construction workers currently on site, the development ranks among the largest private-sector industrial investments in Minnesota’s history. Essar Group has already invested over $2 billion in equity into the project.
KEY QUOTES:
“This financing from Macquarie marks another major step forward for Mesabi Metallics and builds on the strong momentum we have established with our recently announced financial partnerships. Together, these transactions reflect growing confidence in the quality, scale and strategic importance of our project as we build a new American source of DR-grade iron ore to strengthen domestic steel supply chains and reduce dependence on imports.”
Joe Broking, President and CEO, Mesabi Metallics
“Macquarie has enjoyed a longstanding financing relationship with Essar Group, and we are pleased to extend that relationship to their metals and mining investments in the US. Mesabi is developing a high-quality and strategically important project for the U.S. steel sector, and we look forward to supporting the company over the long term.”
Mike Burns, Senior Managing Director, Commodities and Global Markets, Macquarie Group
