Mesabi Metallics’ proposed Iowa steel complex remains short of a final state agreement, leaving a $15 billion investment plan and its projected jobs dependent on unresolved land, infrastructure and financing talks.
Iowa Economic Development Authority Director Debi Durham told Radio Iowa on Oct. 29 that negotiations had not settled the project’s location, gas service, local incentives or financing. She said any agreement would still need to go through state contracting and board approval.
Mesabi announced the Iowa complex on Sept. 28 as part of an $18 billion plan that includes $3 billion to complete its Minnesota iron-ore mine. The company projects more than 6,000 construction jobs, at least 1,750 full-time positions once the plant operates and $95 billion in economic output during construction and its first 10 years of full operations. The White House said the first phase would produce 7.5 million tons of steel a year, with output later rising to about 10 million tons. The Associated Press reported that production is projected to begin in 2030.
Iowa Gov. Kim Reynolds signed House File 2801 on Oct. 2. The law allows eligible businesses in rural counties to receive a transferable investment tax credit of up to 10% of qualifying investment over 10 years. The Iowa Legislative Services Agency’s fiscal note assumes $11.15 billion of Mesabi’s proposed investment would qualify. It estimates $575 million in additional General Fund revenue reductions from fiscal 2029 through fiscal 2041 compared with the previous credit structure, assuming the company receives an award. The estimate does not confirm that an award has been approved.
President Donald Trump announced the project about five weeks before the Nov. 3 midterm elections. At the event, he told Iowa Republicans, “I love Iowa. I win Iowa every time.” The Associated Press reported that U.S. Rep. Ashley Hinson, then running for the Senate, and U.S. Rep. Mariannette Miller-Meeks, seeking re-election, attended. The timing and attendance show the political setting, but do not establish Trump’s motive for announcing the plan.
Mesabi has not announced a final parcel, and land remained under discussion in late October. The Associated Press cited Wisconsin’s Foxconn project as a precedent for caution: Foxconn initially promised 13,000 jobs, then later said it expected about 2,600 by the end of 2029.
The Iowa Economic Development Authority lists its next board meeting for Nov. 20 at 10 a.m. ET (9 a.m. CST). The scheduled meeting does not confirm that Mesabi’s proposal will be considered.
