Edited release
11/12/26
Mesabi Metallics’ planned $15 billion Iowa steel project moved a step closer to building the largest integrated steel complex in U.S. history this week, as the Lee County Board of Supervisors unanimously approved a term sheet setting the framework for local tax and community benefit payments. The Board also passed a resolution supporting the plant—a key requirement for Mesabi’s incentive package with the Iowa Economic Development Authority (IEDA).
Joe Broking, CEO of Mesabi Metallics. said in a release, “Paired with our nearly $3 billion investment in Minnesota, this project creates a fully integrated American steel supply chain—iron ore mined and processed in Minnesota, high-quality steel made in Iowa.”
Under the agreed terms, Mesabi Metallics would:
- Provide up to $10.5 million in host-community payments during development and construction to help offset demands on county services
- Guarantee at least $112 million in new assessed property value before Mesabi receives any tax rebate
- Pay Lee County $50 million over 20 years in lieu of additional property taxes
The Iowa project is expected to:
- Support more than 6,000 construction jobs
- Employ at least 1,750 full-time workers once fully operational
- Generate an estimated $95 billion in total economic output during construction and the first 10 years of full operations
- Essar Group is a multinational industrial group and the project sponsor of Mesabi Metallics, with operations spanning steel, energy, infrastructure and shipping. Essar’s global portfolio includes interests in oil and gas, power generation, ports, and logistics.