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Indian banks sue Essar over cost overruns
Essar Steel Minnesota, bankrupt and seeking capital from a new holdings company, is still providing headaches to its parent company Essar Global back in India. John Myers at the Duluth News Tribune reported Dec. 7 that banks in India are suing Essar over problems on the Nashwauk iron ore project. From the story: The Economic Times reported Wednesday…
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Bankruptcy court lets Essar keep mineral leases
On Tuesday, a federal bankruptcy judge denied the state of Minnesota’s request to strip Essar Steel Minnesota of mineral leases. This move breathes new life into Essar, though perhaps only temporarily. It’s a significant setback for hopes that Cliffs Natural Resources could quickly take over the project. The beleaguered Essar, stuck with a half complete taconite…
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Essar owes $1.1 billion in bankrupcy
Bankruptcy proceedings began recently for Essar Steel Minnesota, the struggling subsidiary of the Indian company Essar Steel, which seeks to build a new iron mine in Northern Minnesota. The story draws rapt attention from residents and leaders on the Mesabi Iron Range. For good reason. The outcome of this case will determine if hundreds of new…
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Cliffs CEO, Dayton to talk Essar on the Range
Minnesota Gov. Mark Dayton and Cliffs Natural Resources CEO Lourenco Goncalves will come to the Iron Range on Tuesday, July 12. Their visit aims to showcase how a long suffering Iron Range mining project might find new life. Dayton and Goncalves will discuss the governor’s recent decision to cancel the mineral leases for Essar Steel Minnesota’s new iron…
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Cliffs seeks to buy Essar project, make value-added iron
Gov. Mark Dayton’s administration will not renew the mineral leases of the Essar Steel Minnesota project near Nashwauk. This comes to me from a source familiar with today’s private meeting between Essar Steel officials and the governor. Instead, Dayton will announce a deal between the state and Cliffs Natural Resources that would allow Cliffs to buy the…
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Essar mine project faces life or death moment
Essar Steel Minnesota may soon lose its mineral leases for its incomplete iron ore mine near Nashwauk, Minnesota. The beleaguered India-based company missed another deadline in repaying state grant money it received to build an innovative new steel mill, which Essar later scaled down to a traditional taconite processing plant. Losing the mineral leases would essentially…
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Essar faces spring crucible
Essar Steel has been in the news plenty these days. The stories can all run together, so let’s combine the things we’ve learned recently to form a clearer picture. In a nutshell, I think Essar is headed for a sale. Perhaps a partial sale, but a major new investor is likely necessary for this new Iron Range…
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Essar misses deadline for $10 million repayment
While the half-finished project continues to jut from the landscape in eastern Itasca County, Essar Steel Minnesota is likely going to change considerably before work continues. In fact, it might not even be called Essar anymore if many involved have their say. Dee DePass at the Star Tribune reports today that Essar Steel Minnesota has missed a late…
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Essar Steel Minnesota nears bankruptcy
Essar Steel Minnesota is preparing for bankruptcy. This morning the Duluth News Tribune shared a Reuters report that the company building a new taconite plant near Nashwauk is close to bankruptcy. From a John Myers story: Essar has hired financial and legal advisers to help restructure its debt, several financial news sources reported over the…
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Cliffs eyes acquiring Essar plant
As snow fades from the ditches of Northern Minnesota, the Essar Steel construction site north of Nashwauk remains frozen in time. Minor movement in and out of the site is but partial salve for the idled hope of hundreds of jobs from the region’s largest new mining project in a generation. Essar has stated that it hopes…
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Essar layoffs signal project hibernation
Around 3 o’clock Friday afternoon, the streets of Nashwauk were busier than usual, a dozen full sized pickups parked outside the town’s two bars, DeNucci’s and Wizards. The bars face each other at the last stop sign I see before heading past Essar Steel, north to my home in the woods of Itasca County on the western Iron Range. “That’s…
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Essar accepts Gov. Dayton’s repayment terms
On Dec. 31, Gov. Mark Dayton announced that Essar Steel Minnesota has accepted the repayment terms he laid out just before Christmas. This means that the company will repay almost $66 million over the next five years. “This project is tremendously important to the Iron Range, supporting more than 700 construction jobs and an expected…
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Gov. Dayton issues terms for Essar repayment
Today, Minnesota Gov. Mark Dayton’s administration released a letter sent to Madhu Vuppuluri, CEO of Essar Steel Minnesota, demanding the company accept repayment terms for about $66 million in state grants. Dayton gives the company until Dec. 30 to accept the terms of the repayment agreement in writing. Essar owes the grant money because it did not…
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Essar pays back $6 million to IRRRB
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…
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Essar still owes millions to Iron Range contractors
Major media outlets report that despite Essar’s payment of $20 million to local vendors after an ultimatum from Gov. Mark Dayton, the company still owes millions to contractors. Coverage includes offerings from the Star Tribune (Dee DePass story) and Minnesota Public Radio (Dan Kraker story). This matches recent casual conversations I’ve had with laid off construction workers and miners from nearby idled taconite plants. Vendors…