Essar Steel Minnesota Gets Extension
City council members in Nashwauk recently heard from Essar Steel Minnesota representative Mitch Brunfelt on Essar’s recent victory against the state’s push to take mineral leases from Essar Steel’s bankruptcy assets.
The recent ruling allows Essar an extension until February 3 of 2017, to emerge from bankruptcy and continue progress on the half-built $1.9 billion Nashwauk mine and processing plant according to the Hibbing Daily Tribune.
Meeting the court’s deadline is expected to be an uphill battle with Essar Steel Minnesota and its holding company reporting $1.1 billion in liabilities and only $208 million in assets.
In 2008 Essar broke ground and was set to be the state’s largest private construction project and the first new taconite plant on the Iron Range in decades, However construction on the project came to halt last year when Essar Steel ran out of the funds needed for the project.