This $2.5 billion world-class, low-cost direct reduction-grade iron ore project helps the U.S. steel industry reduce reliance on imports from countries like Brazil.
Nashwauk, MinnesotaJune 3, 2026 /PRNewswire/ — Mesabi Metallics Company LLC (“Mesabi Metallics”), a subsidiary of the Essar Group, has agreed to sell a 50% royalty interest to The Metals Royalty Company Inc. (“TMCR”) for a total consideration of $265 million, implying a valuation of over $500 million for the royalty platform. The transaction with TMCR will be completed in two equal installments of $132.5 million each: the first was closed on June 1, 2026, and the second is expected to close within 60 days. The majority of the proceeds from this transaction will be used for Mesabi Metallics’ future development.
Mesabi Metallics is developing a state-of-the-art direct reduction-grade iron ore mine and pellet plant in Nashwauk, Minnesota.
This transaction further validates the exceptional quality, scale, and long-term strategic importance of Mesabi Metallics’ world-class direct reduction (DR)-grade iron ore mine, concentrator, and pellet plant in Minnesota, which is expected to commence production in the third quarter of 2026.
Once operational, Mesabi Metallics will become one of the few significant commercial producers of DR-grade iron ore pellets in North America. These pellets are a critical raw material for electric arc furnace (EAF) steelmaking, but the U.S. currently relies heavily on imports from countries such as Brazil. Mesabi Metallics’ production will help enhance domestic manufacturing competitiveness while supporting key industries such as infrastructure, automotive, shipbuilding, defense, and energy.
At startup, Mesabi Metallics is expected to be one of the lowest-cost iron ore producers globally. This structural advantage stems from the exceptional grade and scale of its ore body, modern processing infrastructure, and its strategic location in the heart of the U.S. Midwest. Mesabi Metallics aims to produce some of the highest-quality, highest-grade DR pellets in the world, making its product the preferred raw material for EAF steelmakers.
This transaction follows the recent announcement of over $670 million in financing commitments, including $520 million from Breakwall Capital and $150 million from Macquarie Group. Mesabi Metallics has also received an indication of support of up to $10 billion from the Export-Import Bank of the United States (EXIM). Together, these financings underscore the growing confidence of institutional investors in one of America’s most critical mineral and industrial development projects. These financings reflect broad and growing confidence in Mesabi’s assets, management team, and national strategic importance.
Artem Matyushok, Board Member of Mesabi Metallics, stated: “TMCR’s investment is a powerful third-party validation of Mesabi’s quality and strategic importance. As the U.S. commits to rebuilding domestic industrial capacity and securing critical supply chains, DR-grade iron ore has become an increasingly vital strategic resource. Mesabi is uniquely positioned to reliably supply this resource from a long-life U.S. asset while creating significant value for stakeholders.”
Brian Paes-Braga, Founder, Chairman, and CEO of TMCR, stated: “Mesabi Metallics is one of the most strategically important mining projects being developed in North America. This project combines scale, quality, and a long-life mine, with direct benefits from the U.S. reindustrialization process. We believe that Mesabi will play a pivotal role in supplying resources to the domestic steel industry for decades to come.”
Scotiabank served as exclusive financial advisor to Mesabi Metallics and its affiliates in this transaction.
About Mesabi Metallics Company LLC
Mesabi Metallics Company LLC, a subsidiary of the Essar Group, is developing a state-of-the-art direct reduction-grade iron ore mine and pellet plant in Nashwauk, Minnesota. Upon completion, the project represents an investment of approximately $2.5 billion, making it the first new iron ore mine and pellet plant in Minnesota in nearly fifty years. Mesabi expects to produce one of the highest-grade DR pellets globally, providing a secure domestic supply of critical raw materials for the U.S. steel industry, infrastructure construction, shipbuilding, the defense industrial base, and the broader manufacturing renaissance.
Mesabi Metallics is a cornerstone of the overall strategy to reshore critical steel supply chains and industrial production to the United States.
About The Metals Royalty Company Inc.
The Metals Royalty Company Inc. (NASDAQ: TMCR) is a specialized financing platform dedicated to advancing U.S. critical mineral security and reindustrialization. The company acquires and manages royalties, streams, and similar structured interests in metals and minerals across the full value chain.