Essar Steel Minnesota: Financing Delay

Updated: 08/02/2013 10:37 PM
Created: 08/02/2013 11:15 AM

Essar Steel Minnesota invited us last August to view the progress of their massive project in Nashwauk. But then, a few weeks later, they announced a slowdown in construction.

Things have not ramped up since then. And on Friday, Eyewitness News confirmed a Star Tribune media report that the plant may not open for at least a year.

The plan is to build a 7 million ton per year pellet plant, and mine the taconite on site.

CEO Madhu Vuppuluri said the delay was due to financing. He said they have raised $1.1 billion dollars, and have spent that much. But they still need $600 million to finish the project.

Local Essar leaders acknowledged there is frustration with the setbacks, but that they are frustrated too. They cite that theirs is the largest private capital project in North America, and possibly the world.

Elected leaders from across the region said they have been kept in the loop about the projected delays.

Trish Kline, the Itasca County Administrator, said that most of the infrastructure is done, and they are confident the project will be done.

Front Page

  • Wisconsin Makes Minnesota Offer on Tax Reciprocity

    The neighboring states have been unable to reach a deal since a 40-year agreement expired in 2009. An agreement would simplify income taxes for the roughly 80,000 who live in one state and work in the other.

  • Minn. DNR Increases Target Wolf Harvest

    The Minnesota DNR is increasing the target harvest for this fall's wolf hunt from 250 to 280. The DNR says the latest population survey estimates that there were 2,423 wolves living in Minnesota this past winter, which is 212 more animals than estimated the previous winter.

  • Update: Teen Killed in Douglas Co. Crash

    The Douglas County Sheriff's Office says a Lake Nebagamon teenager was killed in a two-vehicle crash on Wednesday afternoon.  15-year-old Seth N. Stariha, a passenger in one of the vehicles, was pronounced dead at the scene.

  • Workers at the NOvA hall in Ash River assemble the final block of the far detector in early February 2014, with the nearly completed detector in the background. U of M Reaches Milestone with Ash River Neutrino Detector

    The University of Minnesota is celebrating a milestone in creating an experimental particle detector that it says could eventually yield important information about the beginning of the universe.

  • Missing Employee Found at Soudan Underground Mine State Park

    Authorities have located 76-year-old Adrienne De Vries at the Soudan Underground Mine State Park. De Vries is an employee of the park, and lost her way when walking down a trail. The St. Louis County Sheriff's Department says she was transported to Ely Hospital to get checked as a precautionary.


Flood Warning

MN AREAS AFFECTED: Koochiching; St. Louis
Expires: 7/25/2014 4:00 PM