DEVELOPING
President Donald Trump announces the Mesabi Metallics steel project in the Oval Office on Sept. 28, 2026. Iowa Gov. Kim Reynolds and members of the state's congressional delegation attended. (Official White House Photo by Molly Riley)
Mesabi Metallics plans to build a $15 billion steel mill in southeast Iowa. U.S. Rep. Mariannette Miller-Meeks has pointed to Lee County, the state's southeastern corner, where the Mississippi River separates Iowa from Illinois and the Des Moines River marks the Missouri line. The county's top elected official says that isn't settled. President Trump announced the project at the White House on Monday, with Gov. Kim Reynolds and members of Iowa's congressional delegation in the room.
The company, owned by India-based Essar Group, says the mill will employ 1,750 people at an average of $49 an hour, with up to 6,000 construction jobs during the build. First steel is targeted for 2030.
The announcement answered the what. Location Decision is reporting the why: the confirmed facts come first, followed by what we're still chasing.
What's confirmed
The money. $15 billion. The governor's office calls it the largest private investment in Iowa's history.
The jobs. 1,750 permanent jobs averaging $49 an hour, plus up to 6,000 construction jobs.
The size. The first phase is sized at 7.5 million tons of steel a year, according to Iowa Capital Dispatch. The president put the figure at 10 million tons.
The ore. Direct-reduction-grade iron ore pellets from Mesabi's new mine near Nashwauk, Minn., the first new iron mine in the state in roughly 50 years. The Iowa mill will turn those pellets into direct reduced iron and melt it in electric arc furnaces. "This is a major moment for U.S. made steel," CEO Joe Broking said, according to the Mesabi Tribune.
The timeline. Production targeted for 2030.
The site. Southeast Iowa. The exact site hasn't been disclosed. Miller-Meeks indicated in a Facebook post that the plant will be built in Lee County, KWQC reported. Ginger Knisley, chair of the Lee County Board of Supervisors, told Location Decision that nothing yet confirms Lee County as the chosen site.
The gas. Reynolds said a natural gas pipeline will be extended to the plant, Radio Iowa reported. She has also said the region will need improvements to power, rail and roads, according to CBS2 Iowa.
The incentives. Reynolds has called the Legislature into special session Friday, Oct. 2, at 8:30 a.m. to make what her office calls "reasonable and limited updates" to the state's MEGA program. The terms haven't been released, KCRG reported. Commerce Secretary Howard Lutnick, asked whether the project depends on state tax breaks, said, "I think this deal is done."
Why southeast Iowa? What we're testing
Tommy J. Kurtz is managing director of Avident Advisors, the site selection and economic development consulting affiliate of law firm Jones Walker. A certified economic developer with nearly 30 years in the field, Kurtz led business development for the Corpus Christi Regional Economic Development Corp., where he worked on a $2 billion electric arc furnace steel project and a $10 billion ethylene plant. Earlier, at Louisiana Economic Development, he coordinated $26 billion in new investment. In an email to Location Decision, he called it "not your usual project announcement," one that pairs heavy industry with new infrastructure and that the president unveiled himself.
Rail and water. The exact site is still unknown, but Kurtz said it appears to be on or near the Mississippi River, which "provides access for the iron ore from Minnesota but also access to water for processing." BNSF serves the area, he noted, "so rail and water." The company has said the pellets will move from Minnesota by rail, so both options may be in play. We're confirming the site, the carrier and how finished steel will reach customers.
A domestic ore play. Kurtz described the project as an integrated mill pairing direct reduced iron with electric arc furnaces, similar to Hyundai's approach. The difference is the ore. Gulf Coast plants run on imported ore from South America, including Brazil, Peru and Chile, he said, while this mill would use pellets from Minnesota.
Labor from three states. Kurtz said the location will let the mill pull workers from Iowa, Illinois and Missouri. Reynolds called the area "one of the most depressed regions of Iowa," and Knisley said jobs on this scale would make a huge difference for any community. The question for a site selector is whether the regional labor shed can staff 1,750 permanent jobs while absorbing up to 6,000 construction workers.
Power and gas. Direct reduction runs on natural gas, and electric arc furnaces draw heavy power loads. Kurtz said the site appears to need new or upgraded natural gas pipelines, which fits Reynolds' pledge that a pipeline will be extended to the plant. Knisley said she's excited about the infrastructure a project this size could bring to the area, natural gas in particular. The electric supplier, the load and who pays for the upgrades are still unknown.
The incentive package. Friday's session will show what the state is offering and what it is asking for in return.
Why not Minnesota. The ore is mined there. Minnesota Republicans blamed the state's taxes and regulations for losing the mill. The company hasn't said why it chose Iowa over Minnesota.
What we don't know yet
Whether Lee County is the site, the exact parcel and who owns it now
The full MEGA incentive terms, and any local incentives
Rail carrier, barge access and outbound logistics
Electric utility, projected load and who pays for the grid and pipeline work
Water supply and permitting timeline
Whether the 10-million-ton figure is a later phase or a different measure
Reporting log
We reached out to Mesabi Metallics for comment.
We reached out to the Iowa Economic Development Authority for comment.