Essar Steel Holdings has broken ground for a new slab mill built atop an iron ore deposit on the Minnesota Iron Range.
The $1.6 billion US investment in Nashwauk, Minnesota will be built over five years near a former taconite mine creating 2,000 construction jobs and 500 to 700 permanent jobs.
The new president and CEO of Essar Minnesota Steel, Madhu Vuppuluri, says the new mill will support the Sault plant which Essar has committed $500 million US over the next five years.
An Essar press release states the "synergies" between the two facilities will strengthen the company's North American presence in the steel market.
Last year, Essar Global bought Sault Ste. Marie's Algoma Steel, renaming it Essar Steel Algoma.
The Sept. 19 groundbreaking comes 11 months after parent company Essar Global bought Minnesota Steel Industries from the Longyear and Bennett families.
The Minnesota mill is expected to produce 1.5 millon tons of steel and plans to feed taconite (iron ore pellets) and slab steel to Essar Steel Algoma.
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