Mesabi Metallics plans $18 billion integrated US steel project

Mesabi Metallics has announced plans to invest $18 billion in a fully integrated US steelmaking operation combining its iron ore project in Minnesota with a new $15 billion DRI and electric arc furnace steel complex in Iowa.

The project would establish a domestic mine-to-steel supply chain based on direct-reduction-grade iron ore pellets produced at Mesabi Metallics' Nashwauk site on Minnesota's Mesabi Iron Range. These would be transported to the planned Iowa complex for direct reduced iron (DRI) production and subsequent steelmaking in electric arc furnaces (EAFs).

Mesabi Metallics, whose project sponsor is industrial group Essar, described the development as the largest single investment in a steel complex in US history. The company expects to create more than 6,000 construction jobs in Iowa and at least 1,750 permanent positions once the steelworks is operational.

Minnesota mine to supply DR-grade pellets

Around $3 billion is being invested in completing the company's Minnesota iron ore mine and pellet plant. Mesabi Metallics says the project is the first new iron ore mine to be developed in the US in around 50 years.

The Nashwauk operation will produce the company's "Patriot Pellet", a DR-grade pellet intended for DRI-based steelmaking. More than 1,500 construction workers and over 200 permanent employees are currently working at the site, according to the company, with around 350 permanent jobs expected when the operation reaches full production.

The pellets will provide the iron ore feedstock for the proposed Iowa complex, allowing Mesabi Metallics to combine domestic ore production with DRI and EAF steelmaking rather than relying on imported metallics.

Iowa plant to combine hot DRI and scrap

The Iowa steelworks is expected to use hot DRI together with steel scrap as EAF feedstock. Feeding DRI to the furnaces while it remains hot following the reduction process can reduce the energy required for melting and improve furnace productivity.

“This is a major moment for US-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 CEO Joe Broking said.

The company has not yet disclosed the planned crude steel capacity of the Iowa complex or a timetable for construction and commissioning in its announcement.

Mesabi Metallics estimates that construction and the first ten years of full operation of the project could generate $95 billion in economic output. The planned investment would create a vertically integrated US steel producer spanning iron ore mining and pellet production in Minnesota through DRI production and EAF steelmaking in Iowa.

Source and Photo: Mesabi Mettalics