Essar Steel Minnesota achieves financial closure for pellet plant

Essar Steel Minnesota LLC has achieved financial closure to complete the construction of its fully permitted open-pit iron ore mine, crushing, concentrating and pelletizing facilities in Minnesota, USA, which will have an annual pellet production capacity of 7 million tonnes, a company release said.

With this financing in place, ESML will ramp up procurement activities and construction activities at the project site. In the next 30 to 60 days, construction activities at the ESML site will focus on completion of foundational and concrete work before the winter freeze-up.

ESML is anticipating extensive construction activities at the project site during the winter months with the focus on erecting steel for numerous structures, installation of sheeting on buildings, and the installation of numerous pieces of machinery and equipment in the facilities. The company anticipates commencing production of taconite pellets in the second half of 2015.

ESML has already invested approximately $1 billion in the project to date. Other highlights of the ESML project:

* A $1.8 billion capital investment in the Mesabi Iron Range region of Minnesota — the largest economic development project on the Iron Range in over four decades.

* A mine life of over 70 years which will support three generations of miners and their families.

* The only facility in the United States with the flexibility to produce standard, fluxed and DR grade pellets.

The project is estimated to generate approximately $180 million per year in new tax revenues for Minnesota at full capacity production.

Madhu Vuppuluri, President and CEO, Essar Steel Minnesota LLC, said: “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 which will be a tremendous economic engine to the benefit of the Iron Range and its residents for the next several decades. By having completed the necessary financing for this project, we look forward to moving aggressively toward project completion and commencement of production. We thank the community for their continued support for the project.”