This morning, Mike Jennings of the Hibbing Daily Tribune explores the financing situation for Essar Steel Minnesota’s Nashwauk project, a combined mine and steelmaking operation currently in early construction. Essar, an India-based global corporation, is reportedly having some trouble securing necessary loans because of the credit situation.
Jennings reports that State Sen. Tom Bakk will be meeting with a high ranking member of Gov. Pawlenty’s cabinet to see what Minnesota can do to free up credit for Essar.
Of course, the state can’t do much. I’m sitting here in my living room watching “Thomas the Tank Engine” and I already know that. But there will be a meeting. And Tom Bakk is in the paper again. Essar CEO Madhu Vuppuluri does say several important things in the story: 1) that Essar is still pumping its own money into the project until financing is secured, and 2) that they aren’t seeking funds, but rather financing. Vuppuluri and state officials all seem to agree that credit markets are thawing and that a package could be achieved by June, roughly speaking. I’m doing some low key investigating of my own on this and will report more next week. All told, this project seems to be in better shape than the economy as a whole … for whatever that’s worth.
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