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

  • Car Show Kicks Off Spirit Valley Days

    Spirit Valley Days is celebrating 35 years of appreciating the West Duluth neighborhood this year.

  • Alzheimer's Association Expands in Duluth

    The Minnesota-North Dakota chapter of the Alzheimer's Association has a new, bigger location in Duluth. With growing numbers of people getting diagnosed, the association said they needed more space to do their job.

  • Duluth Man Arrested in Death of Baby Daughter

    Duluth police officers have arrested a man in the death of his 14-month-old daughter. 29-year-old Christopher Dennis Peterson has been charged with unintentional second-degree murder.

  • Pediatrician Accused of Assault Gives up License

    Dr. David Van De Loo, a Eau Claire pediatrician accused of sexual contact with 15 juvenile male patients, has agreed to surrender his medical license so that the remaining counts will be dismissed. Van De Loo has already been acquitted of the majority of his sexual assault charges.

  • Thomas the Tank Engine Visits Duluth

    Thomas the Tank Engine rolled into Duluth on Wednesday. The popular children's train is in town for two weekends, August 1-3 and 8-10. Tickets are available online for $19 each.