Mesabi Metallics Plans $15 Billion DRI-EAF Steel Mill in Lee County, Iowa

Mesabi Metallics, an Essar Group company, plans to build a $15 billion integrated steelmaking complex in Lee County, Iowa. The project is expected to create at least 1,750 permanent jobs and up to 6,000 construction jobs.

Direct-reduced iron and electric arc furnaces

The steel mill will use direct-reduced iron (DRI) feeding electric arc furnaces (EAF), alongside recycled scrap. The first phase is planned at 7.5 million tons per year, with eventual capacity of 10 million tons, and production targeted for 2030. The mill will use DR-grade iron ore pellets from the company’s mine and pellet plant in Nashwauk, Minnesota. Mesabi has selected MIDREX Flex technology, which can run on natural gas, hydrogen or blends. Final land control, financing, permits and incentives remain pending.

Joe Broking, CEO of Mesabi Metallics said:

“Mesabi is building a world-class steel supply chain that is 100% American. Our investment will create high-paying jobs with competitive benefits in Iowa and Minnesota, generate tens of billions of dollars in U.S. economic activity, and strengthen our domestic manufacturing base.”

Iowa Governor Kim Reynolds said:

“I’m thrilled to welcome Mesabi Metallics to Iowa and partner with their team to forge the future of American steel manufacturing.”