Steel Mills

Essar Taconite Plant Receives Funding

Written by Sandy Williams


Essar Steel Minnesota announced Wednesday that it has secured funding to move ahead with completion of its $1.8 million taconite plant. Last month a bond deal was called off after the company failed to raise the required equity by the bond deadline.

The amount of the funding was not disclosed but Essar Assistant General Counsel Mitch Brunfelt said it was a “combination of equity and loans.”

“This truly is a momentous occasion for our company and for the Iron Range as we now have in place the necessary financing to complete this historic project,” said Essar Steel Minnesota CEO Madhu Vuppuluri.

About half of the plant is finished and workers are scrambling to complete concrete work before winter sets in. Building construction and installation of equipment will follow. Originally expected to begin production in mid-2015, completion of the plant in Nashwauk, Minn., is now anticipated for the second half of 2015.

At full capacity the plant is expected to produce 7 million tons of iron ore pellets per year.

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