Daijiworld Media Network - Washington

Washington, Sep 29: US President Donald J. Trump has announced an $18 billion investment by Essar-backed Mesabi Metallics to establish a fully integrated American steel company, linking its iron ore mine on Minnesota's Mesabi Iron Range with a new steel complex in Iowa.

The announcement was made at the White House in the presence of Essar Group Vice Chairman and Founder Ravi Ruia and Mesabi Metallics Chairman Rewant Ruia.

US Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright and US Export-Import Bank Chairman John Jovanovic were also present, along with Iowa Governor Kim Reynolds, Senator Joni Ernst and Representatives Mariannette Miller-Meeks and Ashley Hinson.

The investment comprises a proposed $15 billion integrated steel complex in Iowa, in addition to the nearly $3 billion already invested in Mesabi Metallics' iron ore mine and pelletising facility in Minnesota.

The project is described as the largest single-location investment in an integrated steel complex in US history. It is expected to generate thousands of jobs in Minnesota and Iowa, support economic growth across the Midwest and establish a fully domestic steel supply chain, with iron ore mined, steel melted and finished products produced in the US.

Mesabi Metallics recently opened the first new iron ore mine in the United States in 50 years.

Ravi Ruia said the investment marked a new chapter in Essar's global journey and carried forward the vision of his late brother Shashi Ruia to build world-class businesses with a global footprint.

"With over three decades of experience across the steel value chain, Essar is proud to bring that expertise to this landmark investment. It also reflects Prime Minister Narendra Modi's vision for a stronger India-US economic partnership, and our commitment to contributing to that vision through long-term investment, industrial growth and job creation," he said.

Rewant Ruia described the announcement as a major milestone for Mesabi Metallics and the US steel industry.

"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. This investment will create thousands of jobs, strengthen domestic steelmaking capacity and establish Mesabi Metallics as a major force in America's steel industry," he said.

The company's iron ore mine in Nashwauk, Minnesota, has attracted nearly $3 billion in investment so far. It is the first new iron ore mine built in the US in five decades.

The mine will produce Patriot Pellet, a direct-reduction-grade iron ore pellet designed for modern electric arc furnace steelmaking. The company says the pellets will be among the highest-quality iron ore pellets produced globally.

The Minnesota mine will supply iron ore directly to the Iowa steel complex, creating a domestic mine-to-mill supply chain.

More than 1,500 construction workers are currently employed at the mine site, along with over 200 full-time employees. Employment is expected to reach around 350 full-time jobs once the mine becomes fully operational.

The proposed Iowa complex will account for $15 billion of the total investment and is expected to create more than 8,000 construction jobs. The company also plans to work with local vendors, supporting additional employment across the region.

Once operational, the Iowa facility is expected to employ at least 1,750 full-time workers and continue partnerships with suppliers and businesses across Iowa and the Midwest.

During construction and the first 10 years of operations, the company's investment in US-made steel is projected to generate $95 billion in total economic output, supporting businesses, workers and communities across the region.

The Iowa complex will use hot direct-reduced iron (DRI) and electric arc furnace (EAF) technologies, which the company says will reduce energy consumption and emissions compared with traditional steelmaking methods.

Under the DRI process, oxygen is removed from Minnesota-mined iron ore at temperatures below its melting point to produce solid metallic iron. The hot DRI can then be fed directly into an electric arc furnace, reducing the energy required to melt the material and improving production efficiency.

The EAFs will use a combination of hot, freshly reduced iron produced through the plant's own DRI process and scrap steel. The technology is expected to reduce energy use and emissions compared with conventional coal-fired blast furnaces.

Mesabi Metallics said the combination of domestic iron ore production in Minnesota and modern EAF steelmaking in Iowa would bring together the strengths of the two major steel production models currently used in the US.

The company said the integrated model would enable it to produce high-quality steel through a fully domestic supply chain while improving efficiency and reducing emissions.

The project is expected to strengthen domestic steelmaking capacity by connecting Minnesota's new iron ore mine with the Iowa steel complex and producing finished steel entirely within the US.