Trump Hails $15 Billion Iowa Steel Plant Backed By Essar’s Mesabi Metallics

President Donald Trump has promoted a proposed $15 billion steel complex in southeast Iowa that would be developed by Mesabi Metallics, a company backed by India's Essar Group.

President Donald Trump promotes a $15 billion steel plant planned for Iowa.

Trump described the project as the largest steel plant in US history.

Essar and Mesabi Metallics have announced an $18 billion integrated investment combining the proposed Iowa steel complex with an iron ore mine and pellet plant in Minnesota.

Mesabi Metallics plans to invest $15 billion in the Iowa facility, while about $3 billion is being spent to complete the Minnesota iron ore project.

The combined development is expected to create more than 8,000 construction and permanent jobs, according to the company.

Iowa Gov. Kim Reynolds has supported the project and signed legislation allowing the state to provide up to nearly $1.4 billion in tax incentives for the proposed steel plant.

The legislation raises the state's tax-incentive cap for the project from 5% over five years to 10% over 10 years.

The Iowa Economic Development Authority still has to approve the company's full application.

The project is being pursued by a group with a complicated history in the North American steel and mining industries.

Essar Steel Minnesota, the predecessor to Mesabi Metallics, filed for Chapter 11 bankruptcy protection in July 2016 after failing to complete its Minnesota iron ore project.

The company subsequently emerged from bankruptcy in December 2017 under new ownership and became Mesabi Metallics.

The company is now moving toward completion of its Minnesota mine and pellet plant.

Mesabi Metallics announced in March that it had secured a $520 million credit facility, while in June it announced a $265 million transaction involving part of its royalty interest.

Essar says it has invested more than $2 billion in equity in the Minnesota project and is targeting commercial operations in the second half of 2026, subject to completion of construction.

The proposed Iowa plant would use iron ore from the Minnesota operation as part of an integrated US steel supply chain.