The $2.5 billion world-scale, low-cost DR-grade iron ore mine positions U.S. steel industry to break free from foreign imports from Brazil and other countries
NASHWAUK, Minn., June 2, 2026 /PRNewswire/ -- Mesabi Metallics Company LLC (Mesabi Metallics), backed by Essar Group, has agreed to sell 50% of its royalty interest to The Metals Royalty Company Inc. (TMCR) for total consideration of $265 million, implying a valuation of more than $500 million for the royalty platform. The transaction with TMCR will be completed in two equal tranches of $132.5 million each: the first tranche closed on 1st June 2026, with the second tranche expected to close within 60 days. The majority of the proceeds from this transaction will be deployed toward the future growth of Mesabi Metallics.
The transaction further validates the exceptional quality, scale and long-term strategic importance of Mesabi Metallics' world-class Direct Reduction (DR) grade iron ore mine, beneficiation plant and pellet plant in Minnesota, which is expected to commence production in the third quarter of 2026.
Once operational, Mesabi Metallics will become one of the only significant domestic producers of merchant DR-grade iron ore pellets in North America. These pellets are a critical input for electric arc furnace steelmaking, yet the United States currently relies heavily on imports from Brazil and other countries for supply. Mesabi Metallics' production will help strengthen domestic manufacturing competitiveness while supporting critical industries including infrastructure, automotive, shipbuilding, defense and energy.
At start-up, Mesabi Metallics will be among the lowest-cost iron ore producers globally. This structural advantage is driven by the exceptional grade and scale of its ore body, its modern processing infrastructure and its strategic location at the heart of the midwestern United States. Mesabi Metallics is designed to produce among the highest-quality, highest-grade DR pellets globally, making the company's output the preferred feedstock for electric arc furnace steelmakers.
The transaction follows more than $670 million of recently announced financing commitments, including $520 million from Breakwall Capital and $150 million from Macquarie Group. Mesabi Metallics has also received an indication of support from the Export-Import Bank of the United States (EXIM) of up to $10 billion. Together, these financings underscore growing institutional confidence in one of America's most significant critical mineral and industrial development projects. These financings reflect broad and growing confidence in Mesabi's assets, management team and strategic importance to the nation.
"TMCR's investment is a powerful third-party validation of the quality and strategic importance of Mesabi," said Artem Matyushok, Board Member of Mesabi Metallics. "As the United States works to rebuild domestic industrial capacity and secure critical supply chains, DR-grade iron ore has become an increasingly important strategic resource. Mesabi is uniquely positioned to supply that resource from a long-life American asset while creating substantial value for our stakeholders."
"Mesabi Metallics represents one of the most strategically important mining projects under development in North America," said Brian Paes-Braga, Founder, Chairman and CEO of TMCR. "The project combines scale, quality, long mine life and direct exposure to the re-industrialization of the United States. We believe Mesabi will play a critical role in supplying the domestic steel industry for decades to come."
Scotiabank acted as exclusive financial advisor to Mesabi Metallics and its affiliates in connection with the transaction.
About Mesabi Metallics Company LLC
Mesabi Metallics Company LLC, an Essar Group company, is developing a state-of-the-art DR-grade iron ore mine and pellet plant in Nashwauk, Minnesota. Upon completion, the project will represent approximately $2.5 billion of investment and become the first new iron ore mine and pellet plant developed in Minnesota in nearly fifty years. Mesabi is expected to produce some of the highest-grade DR pellets in the world, providing a secure domestic supply of critical raw materials needed to support America's steel industry, infrastructure buildout, shipbuilding, defense industrial base and broader manufacturing resurgence.
Mesabi Metallics is the cornerstone of a broader strategy to re-shore critical steel supply chains and industrial production back to the United States.
About The Metals Royalty Company Inc.
The Metals Royalty Company Inc. (NASDAQ: TMCR) is a purpose-built financing platform dedicated to advancing U.S. critical mineral security and re-industrialization. The Company acquires and manages metals and mineral royalties, streams, and similar structured interests across the full value chain.
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Mesabi Metallics Monetizes Portion of Royalty Interest for $265 Million
