Trump unveils Essar-backed Mesabi Metallics’ $18bn US steel investment, linking Minnesota iron ore with a new Iowa complex and thousands of jobs….reports Asian Lite News Desk
US President Donald Trump has announced an $18 billion investment by Essar-backed Mesabi Metallics to establish a fully integrated American steel company linking an iron ore mine in Minnesota with a new steel complex in Iowa.
The investment, announced at the White House on Monday, includes a proposed $15 billion steelmaking complex in Iowa alongside the nearly $3 billion already invested in Mesabi Metallics’ iron ore mine and pelletising facility in Minnesota.
The project is being described by the company as the largest single-location investment in an integrated steel complex in US history. It is expected to create thousands of jobs and establish a domestic supply chain stretching from iron ore mining to finished steel production.
Essar Group founder and vice-chairman Ravi Ruia and Mesabi Metallics chairman Rewant Ruia attended the White House announcement alongside US Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and John Jovanovic, chairman of the US Export-Import Bank.
Iowa Governor Kim Reynolds, Senator Joni Ernst and Representatives Mariannette Miller-Meeks and Ashley Hinson were also present.
The planned development will connect Mesabi Metallics’ mine in Nashwauk, Minnesota, with the new steel complex in Iowa. The company said the resulting supply chain would ensure that iron ore is mined, steel is melted and finished products are produced entirely in the United States.
“This investment marks a new chapter in Essar’s global journey and carries forward the vision of my brother, Shashi Ruia, to build world-class businesses with a global footprint,” Ravi Ruia said.
“With over three decades of experience across the steel value chain, Essar is proud to bring that expertise to this landmark investment,” he added, linking the project to Prime Minister Narendra Modi’s vision for a stronger India-US economic partnership.
Minnesota mine feeds Iowa complex
The Minnesota operation is a key part of the planned integrated business.
Mesabi Metallics said its mine on the Mesabi Iron Range is the first new iron ore mine built in the US in 50 years. Nearly $3 billion has been invested in the mine and pelletising facility to date.
The Nashwauk facility will produce the company’s Patriot Pellet, a direct-reduction-grade iron ore pellet designed for electric arc furnace steelmaking. The pellets will then be transported to the Iowa complex as the raw material for steel production.
More than 1,500 construction workers are currently working at the Minnesota site, alongside more than 200 full-time employees. The company expects permanent employment at the mine to reach about 350 jobs once it becomes fully operational.
Rewant Ruia described the announcement as a major step for the company and US steelmaking.
“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 per cent American steel,” he said.
The Iowa complex is expected to create more than 8,000 construction jobs, with at least 1,750 permanent positions once the facility becomes operational.
Mesabi Metallics also expects to rely on local suppliers and businesses, potentially supporting additional employment across Iowa and the wider Midwest.
According to the company, its investment in American-made steel is expected to generate $95 billion in total economic output during construction and the first decade of full operations.
Focus on electric steelmaking
The project is also designed around newer steelmaking technologies aimed at reducing energy consumption and emissions.
The Iowa facility will use direct-reduced iron and electric arc furnace technology rather than relying on conventional coal-fired blast furnaces.
Under the process, Minnesota iron ore will be processed into direct-reduced iron by removing oxygen without melting the ore. The hot material can then be fed directly into electric arc furnaces, reducing the energy needed during steel production.
The furnaces will use a combination of the company’s hot direct-reduced iron and recycled scrap steel.
Mesabi Metallics said the approach would allow it to combine the advantages of domestic iron ore production with the efficiency of modern electric arc furnace steelmaking.
The company sees the project as a way to create a mine-to-mill American supply chain while expanding domestic steelmaking capacity.
