One of the worlds leading commodity traders has targeted a U.S expansion, following a major financing packaging.
Mercuria has announced this week that it has signed a Memorandum of Understanding to support the ‘re-emergence’ of Mesabi Metallics Company, a Minesota based iron ore miner.
The company has raised $650 million for a majority stake in Mesabi Metallics as part of the MoU with Chippewa Capital Partners, current 100% owners of Mesabi.
Through the transaction, Mercuria will inherit the Mesabi Project, a 7 Mtpa mine-to-plant pelletization project located in the Mesabi Range in Minnesota.
Mercuria’s backing and investment into Mesabi Metallics is expected to lead to an acceleration of the engineering, procurement and construction of the Mesabi Project.
“Today’s announcement is part of Mercuria’s ambition to further expand and invest in the United States, playing a greater role in increasing American production capacity, and indirectly supporting the strategic steel sector, which is resurging as the US economy is showing even more robust growth,” said Mercuria CEO Marco Dunand. “This investment can directly support job creation and economic growth in Nashwauk, Itasca County and Minnesota’s Iron Range. Pursuant to this investment, Mercuria plans to employ the highly-skilled workforce in Minnesota, as we do elsewhere in America and internationally in all the ventures that Mercuria operates and bring more efficiency to markets and create reliable alternative physical supply solutions to clients. These, along with the healthy business environment, are the key principles that support the growth of our footprint in the United States.”
“Specifically, the Mesabi investment demonstrates our confidence that – with greater financial strength and stability – Mesabi Metallics can re-emerge as a significant player in the North American pellet and value-added product market segment.”