Mesabi Metallics is exploring Kentucky as a possible site for a new steel manufacturing facility while continuing work on its long-delayed Nashwauk project in Minnesota.
The company has taken early steps to engage with Kentucky officials as it evaluates building an integrated steel facility that would use direct-reduced iron (DRI). Job postings and public filings dating back to April 2025 show activity in the state, though no formal project announcement has been made.
Mesabi Metallics already holds permits to construct a DRI facility and electric arc furnace (EAF) on Minnesota’s Iron Range capable of producing 2.5 million tons of steel slabs annually. If Kentucky becomes a serious contender, it could raise questions about Minnesota’s long-term steelmaking prospects. However, the company described its interest as part of routine due diligence.
In a statement, Mesabi said it continues advancing its $2.5 billion investment in a 7 million-ton-per-year DR-grade pellet facility in Nashwauk. The company said the mine and pellet plant — expected to open later this year — would be the first new operation of its kind in 50 years. It added that it is “continuously evaluating potential future investments in Minnesota, Kentucky and other states.”
Electric arc furnaces are more common in the southern U.S., including operations such as U.S. Steel’s Big River facility and a Louisiana-based DRI plant run by Nucor. Domestic EAF producers have faced pressure from imports and tariffs in recent years, making U.S.-based production potentially more competitive.
Executives from Essar Group, the India-based parent company of Mesabi Metallics, registered a Kentucky subsidiary called Mesabi GreenIron on April 25, 2025. Records show the business was formed Feb. 18, 2025.
Rakesh Kankanala, managing director of metals and mining for Essar Capital, and Artem Matyushok, senior managing director of strategy and business development at Essar Capital, were listed as representatives for GreenIron.
Public records from the Kentucky Legislative Ethics Commission show Mesabi Metallics paid $9,000 in January to Babbage Cofounder, a prominent lobbying firm led by former Kentucky Secretary of State and Auditor Robert Babbage. Filings indicate $2,500 went to Robert Babbage, Brian Babbage and Rebecca Hartsough, with lobbyist Sarah Wood slated to receive $1,500.
Anoop Nair, listed in KLEC records as a contact, identifies himself on LinkedIn as chief technology officer for Essar Steel and Mesabi GreenIron.
Lobbying disclosures show Mesabi Metallics supported two Kentucky bills through Jan. 31. House Bill 472 would align with the Kentucky Buy American Act and require that iron, steel or aluminum used in state and local projects be manufactured in the United States unless a waiver is granted. The measure could increase demand for domestically produced steel.
House Bill 500, the state’s budget bill, broadly affects infrastructure, economic development, regulation and labor policy. No known provisions would specifically fast-track a new steel facility.
Two other proposals — Senate Bill 178 and House Bill 530 — aim to narrow environmental review requirements and accelerate permitting for industrial manufacturers. While Mesabi Metallics was not listed as lobbying for those measures as of Feb. 24, the bills stand out given Minnesota’s comparatively stricter regulatory process.
Mesabi Metallics’ LinkedIn page currently lists five Kentucky-based positions in Paducah, including roles in public relations, government relations, human resources and permitting. Job descriptions reference leading engagement efforts for “an integrated steel manufacturing facility with Direct Reduced Iron (DRI).”
Those Kentucky roles do not appear on Mesabi’s main careers page but are available through Essar’s general application portal.
Meanwhile, the Nashwauk project has faced a turbulent history since construction began in 2008. The venture filed for bankruptcy in 2016 under Essar Steel Minnesota before reemerging as Mesabi Metallics. Essar resumed official ownership in 2019.
After repeated delays, Minnesota revoked the project’s public land leases in 2023 and reassigned them to rival Cleveland-Cliffs.
Despite setbacks, Mesabi has recently made steadier progress toward launching Minnesota’s first new mine and pellet plant in 50 years at the former Butler Taconite site. The company has hosted public open houses and invested in electric drills and autonomous 400-ton haul trucks.
In August, Minnesota Gov. Tim Walz visited the site.
The company previously said it expects to begin operations in the first quarter of 2026, though it remains unclear whether that timeline will hold. Mesabi is currently working with the Minnesota Pollution Control Agency to renew expired air and water permits; the public comment period for those renewals closed Feb. 2.
Once operational, the project is expected to produce 7 million tons of DRI pellets annually and create hundreds of jobs on Minnesota’s Iron Range.
Leave a Comment