America's Iron Ore Comeback Heard on the Iron Range
Mesabi Metallics has completed its first production blast at the Nashwauk, Minnesota iron ore operation, marking a defining milestone for the first new iron ore mine and pellet plant built in Minnesota in 50 years. The company, an Essar Group subsidiary, is on schedule for first pellet production in Q3 2026.
Production Milestone
The first blast used a 66-hole pattern and fractured approximately 211,000 tons of ore in a single shot — nearly half the total rock removed to carve Mount Rushmore. This opened the first ramp into the bottom of the pit, clearing the way for 400-ton haul trucks to move ore for the first time. Weekly blasting will continue as the mine advances toward full-scale production.
Facility Overview and Investment
- Total investment: Approximately US$2.5 billion, making it one of Minnesota's biggest economic development projects
- Production capacity: 7 million tons per year of Direct Reduction (DR) grade iron ore pellets
- Workforce: Over 1,500 contractors on site during construction, transitioning to approximately 350 permanent operational employees
- Site area: 16,000 acres in Nashwauk on the Iron Range
- Completion status: Approximately 95% complete as of mid-2026
Technology and Innovation
Mesabi Metallics is deploying cutting-edge mining technology including electric Komatsu PC7000-11 excavators — among the first cable-electric hydraulic excavators operated at a US iron mine — and 400-short ton Komatsu 980E-5 haul trucks. The DR-grade pellets produced will supply domestic electric arc furnace (EAF) steelmakers, advancing the transition to lower-carbon steelmaking. The US Export-Import Bank has signalled support of up to US$10 billion for the project.
