Mesabi Metallics lands $770M federal loan, eyes $5B expansion
What's the deal? Mesabi MetallicsDealroom has a profile for this one. Try Dealroom → has secured a $770 million loan from the Export-Import Bank of the United States (EXIM)Dealroom has a profile for this one. Try Dealroom →, the company confirmed at a September 17, 2026 event marking its first iron concentrate production. Two days earlier, chief executive officer Joe Broking outlined a $5 billion expansion plan at an Itasca County Board meeting in Minnesota.
Why now? The loan completes Mesabi's $2.5 billion of project funding, according to Broking. It arrives as the company approaches its first iron ore pellet production — the first new Iron Range mine in 50 years.
What's the endgame? Mesabi produced its first concentrate this month, blasting apart 1.3 million tons of rock near Nashwauk before a crowd of over 100. The concentrate must still be made into pellets, fired, and reduced before it counts as a final product; the company expects all concentrators operational next month.
How big is this? Among all-time US energy debt rounds, Mesabi's $770 million loan ranks in the 95th percentile across a sample of 1,650 deals. EXIM could provide up to $10 billion in total financing to the company, according to a statement from Congressman Pete Stauber shared by the bank.
What could go wrong? Mesabi's parent, India-based Essar GroupDealroom has a profile for this one. Try Dealroom →, previously ran Essar SteelDealroom has a profile for this one. Try Dealroom →, which filed for bankruptcy in 2016 before reemerging as Mesabi Metallics the following year. State Representative Roger Skraba, who attended the blast event, recalled advising the owners: "Don't do what you did last time."
The signal: Federal officials framed the project around domestic mineral supply and re-industrialisation. "Minerals are the foundational building blocks of everything we need for our re-industrialization efforts, and we cannot rely on our geopolitical competitors for access to these materials," said David Copley, senior director for global supply chain in the National Security Council.
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