US: Mesabi Metallics secures $520 million from Breakwall Capital

New Delhi: Mesabi Metallics Company LLC, backed by Essar Group, has secured a USD 520 million senior secured credit facility from funds managed by Breakwall Capital LP, as it advances towards starting operations at its Minnesota iron ore project later this year.

Located on more than 16,000 acres in northern Minnesota, Mesabi Metallics is completing a $2.5 billion world-scale merchant Direct Reduction (DR) grade iron ore mine and pellet plant that will onshore a strategically important segment of the US steel supply chain.

The financing, provided by Breakwall-managed Valor Mining Credit Partners II in partnership with Vitol, supports the development of a USD 2.5 billion direct reduction (DR)-grade iron ore mine and pellet plant to strengthen the US steel supply chain, the company said in a statement.

Located on more than 16,000 acres in northern Minnesota, the project is among the largest private industrial investments in the state, with over USD 2 billion of equity already invested by Essar.

The company said the project, which has also received backing from the Export-Import Bank of the United States, is expected to reduce reliance on imported raw materials and support domestic steel production across sectors, including automotive, infrastructure and defence.

The construction is ongoing with more than 750 workers onsite, and the project is targeting commercial operations later in 2026.

Essar Group has already invested over $2 billion of equity into the project.

“The partnership with Breakwall is an important milestone for Mesabi Metallics,” said Joe Broking, President and CEO of Mesabi Metallics.

“We are bringing to market a brand-new American source of the highest quality DR-grade iron ore that will help US steelmakers reduce reliance on imported raw materials and international supply chains,” Broking said.