Mesabi Metallics chooses Iowa for $15B steel plant after voicing MN incentive concerns

Mesabi Metallics will build a $15 billion steel plant in Iowa.

President Donald Trump unveiled plans for the plant in the Oval Office on Monday, Sept. 28, according to reporting from the Wall Street Journal.

Mesabi Metallics confirmed the announcement later that day.

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This comes after the company received a $770 million federal loan and announced a $5 billion expansion of its mine site near Nashwauk earlier this month. The company is ramping up operations at the mine and expects pellet production in the next few weeks.

According to a White House official, the plant in Iowa is expected to create over 1,700 jobs.

It is also expected to produce 7.5 million tons of steel each year, which will be sourced from Nashwauk.

At the announcement Monday, Trump was joined by Mesabi executives, federal officials and Iowa state officials.

"It's a great company," Trump said, "and they're going to make a great investment in a place called Iowa."

Trump also claimed his tariffs on foreign steel were responsible for the industry "roaring back to life."

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Mesabi CEO Joe Broking was among the attendees at Monday's announcement. He said the facility in Iowa would bolster the "long-term economic strength" of the Minnesota facility by creating a domestic steel supply chain.

“Mesabi is building a world-class steel supply chain that is 100% American," Broking stated. "Our investment will create high-paying jobs with competitive benefits in Iowa and Minnesota, generate tens of billions of dollars in U.S. economic activity, and strengthen our domestic manufacturing base."

Tax incentives may have played a role in Mesabi's decision to choose Iowa. The Des Moines Register reported that Iowa lawmakers received notice about a potential special session to issues tax breaks for the company on Friday, Sept. 25.

Earlier this month, Mesabi CEO Joe Broking spoke with the Itasca County Board of Commissioners to express his frustration with Minnesota's lack of tax incentives.

"The reality is when you talk to other states, they are more competitive on this subject," Broking said. "Especially for an investment like this, where we're talking about a game-changing investment, they're willing to look at things a bit differently."

Emma Krab

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In a statement Monday, 8th District Congressman Pete Stauber, R-Hermantown, blamed state leadership for the company's decision to build away from Minnesota.

"While Iowa’s leaders have fostered a pro-growth environment that attracts investment and jobs, the Walz-Flannagan Administration have done the opposite," Stauber said. "Their abysmal leadership has driven away opportunity through hostility to industry and indifference to the Iron Range."

Though Broking has expressed frustration the Minnesota permitting process, he stated he "greatly appreciated the support of Governor Walz and the work of the DNR [Department of Natural Resources] and MPCA [Minnesota Pollution Control Agency]" in Mesabi's Monday statement.

The company has not named a location for its Iowa mill. The facility could begin steelmaking as early as 2030.