Steel Mills
September 25, 2014
Essar Steel Minnesota Struggling to Complete Taconite Facility
Written by Sandy Williams
Essar Steel’s Canadian entities have been struggling with financing this year and now that Essar Steel Algoma problems appear resolved, Essar Steel Minnesota LLC (ESML) finds itself in dire need of capital.
The $1.8 billion taconite plant under construction in Nashwauk, Minn., failed to raise the $361 million in equity needed in time to secure a $450 million high-yield bond deal and was forced to pay back all the bond holder investors. The deal is now off and local officials are wondering how the company will be able to finish construction of the plant and deliver on the 350 promised jobs.
