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Iowa lawmakers will consider tax changes for a proposed $15 billion steel complex, but the incentives have not been approved.
What has changed? · 30/09/2026, 20:18 UTC
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US President Donald Trump announced plans on Monday for a $15bn steel mill in south-eastern Iowa, to be built by Mesabi Metallics. He described the proposed plant as the largest in US history. Company representatives and Iowa leaders attended the announcement at the White House. [1] [4]
A White House official projected annual output of about 7.5 million tons of steel at first, rising to 10 million as the mill expands. First production is expected in 2030, though the timetable for reaching full capacity is unclear. The official forecast at least 1,750 permanent jobs; Mesabi estimated another 5,000 to 6,000 jobs during construction. [1] [3] [4]
Mesabi, a Minnesota-based company owned by India’s Essar Group, plans to supply the mill from its mine in Nashwauk. That operation began starting up in September, when the company announced its first iron concentrate. Pellet production was still to follow. [5] [6] [7]
Mesabi Metallics has been named as the developer of the proposed $15 billion steel mill in Iowa. The Minnesota-based company, owned by India’s Essar Group, plans to use iron ore mined in Minnesota. [9] [5]
The White House forecasts 1,750 permanent jobs in Iowa and up to 6,000 construction jobs. A Mesabi statement reported by WGEM and KCRG gives different construction-job wording, forecasting more than 6,000, and says the plant would provide at least 1,750 permanent Iowa jobs.
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The White House projects annual steel production of 7.5 million tons in the mill’s first phase, rising to about 10 million tons. It has not given a year for that expansion. [9]
A Mesabi statement reported by WGEM and KCRG puts the wider Iowa–Minnesota investment at $18 billion: $15 billion for the Iowa mill and $3 billion to complete the company’s iron ore mine in Nashwauk, Minnesota. [10]
Iowa Governor Kim Reynolds has called a special legislative session for 2 October to consider changes to the state’s Major Economic Growth Attraction programme. The move follows Mesabi Metallics’ announcement of a planned $15 billion steel complex in Iowa. Reynolds says the state and the company have signed a memorandum of understanding, but lawmakers have not yet approved the proposed tax changes. [11] [12] [13]
The changes would allow an eligible business in a rural county to receive a tax credit worth up to 10% of its qualifying investment, spread over ten years and transferable under certain conditions. The proposed definition of a rural county is one with 50,000 residents or fewer. No tax-credit award has been announced. [12]
Mesabi says the Iowa plant would be linked to its iron ore mine in Minnesota and employ at least 1,750 people once operational. The White House has described the proposed Iowa facility as the largest steel plant ever built in the US; Mesabi’s own record claim concerns the size of the investment in a steel complex. [13] [14]
Questions remain about how far the Iowa project has progressed. Trump said building had already started, but KWQC reported finding no major project-related Lee County land purchases this year, while county supervisors had received no permit applications. Those checks do not rule out other preparatory work. [16]