Essar-backed Mesabi Metallics announced an $18 billion plan to build a fully integrated American steel company, linking its existing iron ore mine on Minnesota’s Mesabi Iron Range to a proposed steel complex in Lee County, Iowa, the company said at a White House event on 28 September.
The investment comprises a proposed $15 billion integrated steel complex in Iowa, using direct-reduced iron and electric arc furnace technology, alongside the company’s existing $3 billion investment in its Minnesota mine and pelletising facility, according to Mesabi Metallics. President Donald Trump attended the announcement, along with US Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright, Iowa Governor Kim Reynolds and members of Iowa’s congressional delegation.
Thousands of jobs projected
Once fully operational, the Iowa complex is projected to produce up to 10 million tons of steel annually, creating more than 6,000 construction jobs and at least 1,750 permanent positions, the company said. Combined with the Minnesota mine’s roughly 350 operational jobs and over 1,500 construction workers currently employed there, the company put total projected employment across both sites above 8,000 permanent and construction positions, with $95 billion in economic output expected over construction and the first decade of operations.
“This is a major moment for U.S. made steel, combining the highest quality direct-reduction grade iron ore pellet from Minnesota’s Iron Range with the most advanced DRI to EAF steelmaking technology in Iowa,” Mesabi Metallics chief executive Joe Broking said, according to the company’s announcement.
Why It Matters
The project reflects a broader push by US policymakers to rebuild domestic heavy-manufacturing capacity and reduce reliance on imported steel, an effort that has featured prominently in recent G20 trade discussions over industrial overcapacity. Whether the Iowa complex advances from announcement to construction will be an early test of how much private capital is willing to follow federal encouragement into capital-intensive American manufacturing.
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