The temporary welcome sign for the Essar Minnesota construction site near Nashwauk, Minnesota, as seen on Thursday, May 21, 2015. The agglomerator building and stack can be seen in the distance. (PHOTO: Aaron J. Brown)
The Mesabi Daily News reports that Essar Steel Minnesota has paid back $6 million owed to the Iron Range Resources and Rehabilitation Board (IRRRB). The loan was part of the initial public financing for the project back in 2007.
Though the agency was essentially calling the loan, Essar officials were the ones to tell the newspaper. Bill Hanna’s story features more of in-fighting between Essar and Cliffs Natural Resources, two companies struggling for market position in the tumultuous commodities business.
Essar says that Cliffs is trying to thwart its project through public criticism and corporate maneuvering. Cliffs says that Essar isn’t a serious company. Essar says it will finish the project, becoming a low-cost producer of pellets on the Iron Range. Cliffs says this isn’t possible.
“Responding to concerns about the recent decline of construction activities at the Essar Steel Minnesota project site, and to ongoing efforts by Cliffs Natural Resources to stop the project, (Essar) announced today that it remains committed to seeing the project through to completion,” the news release said.
Mitch Brunfelt, Essar’s assistant general counsel and director of government & public relations, stated: “Even though we had a strong run of construction activities and significant progress on the project over the last year, we have run into new headwinds as of late: The sharp decline in iron ore prices, a short-term delay in the availability of construction funds needed for the project, and attacks by Cliffs and others who have been influenced to become detractors of the historic ESML project.
Time will sort that out. The news here is that Essar actually paid that $6 million back.
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