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

  • Smokehaus to Deliver Sandwiches, Meat by Bike

    The Northern Waters Smokehaus is looking to avoid traffic this summer by also going green. On May 5, they will begin delivering their sandwiches around downtown Duluth and down Park Point by bike.

  • Fitger's 5K Kicks Off Race Season

    After a long and cold winter, many runners are ready to hit the road. Finally, this weekend, the racing season in the Northland will begin when a record 2,000 runners run in the 25th Annual Fitger's 5K.

  • Former Minn. Minister Accused of Abuse Reported in Spokane-area

    The Washington State Patrol says investigators have acted on 20 or 30 tips this week as they check locations in the Spokane-area in their search for a self-professed minister accused of sexually abusing at least two girls in rural Minnesota.

  • 2 Hospitalized After Lincoln Park House Fire

    Two people are in the hospital after a house fire in Duluth's Lincoln Park neighborhood on Friday. Assistant Fire Chief Bryan Bushey said the damage is estimated at $30,000. There is no word on the conditions of the victims.

  • Playful Otters Explore Their New Aquarium Home

    Two new river otters have been living at the Great Lakes Aquarium for nearly two months, but they were just released for public view Thursday. On Friday, they were avidly exploring their new home in the Otter Cove.


Winter Weather Advisory

MN AREAS AFFECTED: Koochiching; North Itasca; South Itasca
Expires: 4/19/2014 10:00 AM

Winter Weather Advisory

MN AREAS AFFECTED: Carlton, South St. Louis; Central St. Louis; North St. Louis
Expires: 4/19/2014 12:00 PM

Winter Weather Advisory

MN AREAS AFFECTED: Northern Cook, Northern Lake; Southern Cook, North Shore; Southern Lake, North Shore
Expires: 4/19/2014 4:00 PM

Flood Warning

MN AREAS AFFECTED: Aitkin; Crow Wing
Expires: 4/24/2014 7:00 AM