Minnesota Supreme Court denies review of decision regarding Mesabi Metallics and mineral leases

Mesabi Metallics sent a statement on Tuesday acknowledging the Minnesota Supreme Court’s decision to deny review of their case involving mineral leases.

The Minnesota DNR had terminated the leases back in 2021. The company appealed the decision, with the Minnesota Court of Appeals affirming the decision.

The statement went on to say, “Mesabi Metallics intends to do everything it can to keep its project moving forward. It is in advanced discussions for forming a joint venture with a strategic partner in the steel industry. This new joint venture will reset the Mesabi project, provide hundreds of million dollars of additional equity funds and allay any concerns that the project will not proceed as intended.”

Larry Sutherland, President and COO of Mesabi Metallics, commented, “Mesabi Metallics is the only entity that has the permits to develop the mine facility at the Nashwauk site. We are the logical counterparty for the DNR to partner with to develop and mine the rich iron ore resources in Nashwauk.”

Since 2017, Mesabi Metallics has invested $341 million in its Nashwauk mining operation, of which $22 million was invested in 2022 alone. Parent company Essar Group has continued to invest in Mesabi Metallics. Almost $40 million has been paid to Itasca County, DEED and the Minnesota Department of Natural Resources. Mesabi Metallics has also paid approximately $5.4 million to Itasca County in the form of property taxes since 2017.