November 21, 2008

Essar plans groundbreaking for Minnesota Steel plant

Essar Group has issued a press release on May 30th 2008 indicating that it plans a ground breaking this summer for the USD 1.65 billion mining, processing and steelmaking Minnesota Steel plant.

Mr Ravi Ruia VC of Essar Group said that "We are committed to moving as quickly as possible to bring steelmaking to the iron range. Minnesota Steel plays a key role in our North American steel strategy."

Essar said that it planned to develop the operation that would produce high quality and low cost steel through ore processing, direct reduced iron production and steel making all on one site. Estimated annual production from the plant is expected to be 2.5 million tonnes of steel product.

Essar indicated it will internally finance the entire USD 1.65 billion price tag including technical, managerial and financial resources. It described itself as a USD 50 billion company with assets in steel, energy, power, communications shipping and logistics and construction. Meanwhile, the project’s public face has changed since Essar’s purchase of Minnesota Steel.