Document ID: EPA-HQ-OAR-2017-0664-0098
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2019-09-25T04:00Z

MESABI METALLICS FACILITY PROFILE

The Mesabi Metallics facility, formerly Essar Steel Minnesota, LLC (Essar), is located in Nashwauk, Minnesota in the southeastern part of the Mesabi Iron Range.

History and current status

In 2005, Essar bought the assets of Minnesota Steel Industries, LLC.  After the purchase, Essar entered into mineral lease negotiations with the State in 2007 (MNDNR, 2018).  

In 2008, Essar broke ground for a new direct reduced iron (DRI) plant near Nashwauk (IMA, 2015) and began constructing a crusher, concentrator and other facilities which remained unfinished until filing for chapter 11 bankruptcy in 2016 (MNDNR, 2018). 

Per a 2012 Part 70 Major Amendment issued by the Minnesota Pollution Control Agency (MPCA), Essar had been permitted the following project features (MPCA, 2012):

 An open pit taconite mine capable of mining approximately 24,000,000 tonne/yr of ore.
 A crusher, concentrator with associated tailings basin, producing approximately 7,000,000 tonne/yr of concentrate.
 A pelletizer that can produce approximately 6,500,000 tonne/year of high flux oxide pellets or 7,000,000 tonne/yr of low flux oxide/ DRI grade pellets.
 A DRI facility producing approximately 1,800,000 tonne/yr of iron pellets for direct feed for steel production.
 An electric arc furnace, ladle metallurgy furnace, slag processing, and a caster to produce 1,500,000 tonne/yr of steel slabs for direct shipment or for onsite rolling to produce hot rolled coil.

During the bankruptcy proceedings, Essar changed its name to Mesabi Metallics Company, LLC. In 2017, the company's assets were acquired by Chippewa Capital Partners, LLC (Chippewa) through a bankruptcy auction (MNDNR, 2018), however ownership and financing issues are ongoing (MPCA, 2018a). 

During the bankruptcy, Mesabi Metallics lost certain privately-held mineral leases which now belong to Cleveland-Cliffs, however these account for only a portion of the total leases that Mesabi Metallics holds and also represent only a fraction of the land intended for active mining. It is not anticipated that this would significantly affect Mesabi Metallics' ability to operate and mine as intended (MPCA, 2018a).

Currently, the Minnesota Pollution Control Agency is drafting a Part 70 permit reissuance, including several modifications to the pelletizing plant for the Mesabi Metallics (formerly Essar) facility in Nashwauk, MN (MPCA, 2018a).

Mesabi Metallics is now in the process of constructing the 7 mmtpa pelletizing facility and the 1.8 mmtpa value-added direct reduced Hot Briquetted Iron (HBI) facility indicated in the 2012 Permit Amendment and intends to complete construction by the end of 2019 and begin pellet production by April 2020 (MNDNR, 2018 and MPCA, 2018b). However, it appears that Mesabi Metallics has so far missed a state-imposed deadline to begin construction on the value-added facility (Mesabi Daily News, 2019).

References:

IMA (Iron Mining Association (IMA). 2015. Minnesota's Iron Mining Industry. Available at http://taconite.org/_site_components/files/IMA%20History%20Booklet%202015(1).pdf

Mesabi Daily News. 2019. Mesabi Metallics, Facing Setbacks, Tries To Build Mine. Available at https://www.virginiamn.com/mine/mesabi-metallics-facing-setbacks-tries-to-build-mine/article_d78d296c-97b9-11e9-9480-c786731fa3c0.html

MNDNR (Minnesota Department of Natural Resources). 2018. Minnesota's School Trust Lands FY16-17 Biennial Report. July 2018. Available at https://files.dnr.state.mn.us/lands_minerals/school_trust_lands_biennial_report_fy_1617.pdf

MPCA (Minnesota Pollution Control Agency). 2018a. Email communication between Benjamin Wenkel, MPCA and David Putney, EPA. 

MPCA (Minnesota Pollution Control Agency). 2018b. Mercury Reduction Plan Submittal (Ferrous Mining/Processing). Available at https://www.pca.state.mn.us/sites/default/files/aq-ei2-08a.pdf

MPCA (Minnesota Pollution Control Agency). 2012. Air Emission Permit No. 06100067-004 Major Amendment. Issued to Essar Steel Minnesota LLC.  Available at https://www.pca.state.mn.us/sites/default/files/06100067-004-aqpermit.pdf