Mesabi Metallics Company LLC, an Essar Group company, is developing a $2.1 billion taconite mine and Direct-Reduction (DR) grade iron ore pellet plant on the Mesabi Iron Range in Nashwauk, Minnesota. The facility, set across more than 16,000 acres, is the first new taconite mine and pellet plant built in Minnesota in nearly 50 years. Construction is more than 70% complete, with over $1.8 billion already invested, and the operation is targeted to come online in 2026.
When fully operational, the plant is designed to produce 7 million metric tons of DR-grade iron ore pellets annually, drawing on resources estimated at 1.3 billion tons. DR-grade pellets carry high iron content and low impurity levels, making them a feedstock for steelmakers pursuing lower-carbon electric arc furnace production. The facility incorporates electrically-powered shovels and drills as well as air pollution and emissions control systems.
The project is a significant employer in northern Minnesota. Approximately 700 union construction jobs have been created to date, with more than 350 permanent positions planned once operations begin. The company expects to contribute around $28 million annually to local governments. Mesabi Metallics positions the facility as a supplier to the domestic U.S. steel supply chain, as well as a contributor to the decarbonization efforts of steelmakers that rely on high-quality iron ore inputs.
