Mesabi Metallics Closer : Mesabi Metallics is entering a crucial phase at its iron ore project near Nashwauk, Minnesota, as the company moves toward starting production at what is expected to become the state’s first new taconite mine in about 50 years. The project has spent years facing construction delays, financial problems and legal disputes, but activity at the site has accelerated sharply in 2026.
The company began mining activity this year with its first production blast in July. The blast fractured about 211,000 tons of ore and opened the first ramp into the mine, allowing large haul trucks to begin moving material from the pit.
Production Is Now the Main Focus
Mesabi Metallics is developing both an iron ore mine and a pellet plant at the Nashwauk site. The operation is designed to produce direct-reduction-grade iron ore pellets, a higher-grade material that can be used to make direct reduced iron for steel production.
The company has targeted production of roughly 7 million tons of pellets a year. A recent report from MPR News said the facility was in the final stages of construction, with more than 1,000 construction workers still on site as the company works toward production later this year.
| Project detail | Current plan |
|---|---|
| Location | Nashwauk, Minnesota |
| Planned annual output | About 7 million tons |
| Target production | Fourth quarter of 2026 |
Why the Project Matters to Minnesota
The mine carries significance beyond the amount of ore it could produce. Minnesota’s Iron Range has experienced pressure from mine closures and job losses, making the arrival of a new large-scale operation particularly important for nearby communities.
Mesabi Metallics has said it expects the project to create hundreds of permanent jobs. MPR News reported that the company had already hired more than 200 workers and was targeting about 350 full-time employees. Construction activity has also brought a much larger temporary workforce to the site.
For former mining communities, the project represents the return of industrial activity to a site that has remained unfinished for years.
Financing Helped Push the Project Forward
The road to production has not been smooth. The project was originally developed under Essar Steel Minnesota, which entered bankruptcy in 2016 after construction had begun. Mesabi Metallics later emerged as the successor and restarted major construction work.
In 2026, the company secured additional financing to help complete the project. That included a $520 million senior secured facility from Breakwall Capital and $150 million in financing from Macquarie Group.
The Bigger Steel Industry Picture
The project is also being developed at a time when U.S. steelmakers are looking for more domestic supplies of high-grade iron ore. Direct-reduction pellets can feed electric arc furnaces, a technology that has become an increasingly important part of American steelmaking.
Mesabi Metallics has discussed plans for an even larger downstream investment to produce direct reduced iron. The company has said it could consider facilities in Minnesota or other states, although that expansion remains separate from the mine and pellet plant currently nearing production.
Permits and Local Concerns Remain Important
The project has received several major permits in 2026, including a water quality certification, water permit and operational air permit. Minnesota’s Pollution Control Agency is currently reviewing an amendment to the air permit, with public comments open through October 9, 2026.
That process matters because mining, crushing, material handling and pellet production can generate dust and other emissions. The state agency says the permits are intended to regulate those impacts while the facility moves toward operation.
