Company behind Iowa steel plant praised by Trump has history of trouble

President Donald Trump 's announcement of a steel plant coming to southeast Iowa could transform the economy of a rural community.

Hailed by the president on Monday, Sept. 28, as "the largest steel plant in American history," the project will cost an estimated $15 billion, according to the White House, and will require 6,000 construction workers over the next four years.

Plant owner Mesabi Metallics will employ about 1,750 workers when the factory starts producing.

For residents, the development seems swift. Property owners in the area say a real estate agent approached them about buying land for the plant around a month ago.

But for Ravi Ruia, the co-founder of Mesabi Metallics' Mumbai-based parent company, Trump's announcement was just the latest step in his family's two-decade-long journey to build a North American steel empire. The Ruias' quest has faced many obstacles, including multiple bankruptcy filings, accusations of broken contracts, missed deadlines and stiffed contractors.

Still, after selling tens of billions in assets and receiving a large loan from a Russian state-owned financial institution, the Ruias are about to accomplish a goal that once seemed far-fetched: opening Minnesota's first new iron ore mine in 50 years.

Next comes the Iowa plant. Gov. Kim Reynolds, who said in a statement that the plant is "the most consequential economic development opportunity ever for our state," scheduled a special legislative session for Friday, Oct. 1, to consider tax incentives for the project.

Jesse Harris, a spokesperson for Mesabi Metallics, told the Des Moines Register that Mesabi Metallics is "well positioned to fund and develop the Iowa steel plant." He said Essar Group, its parent company, has invested about $2 billion.

"With the start of operations in Minnesota, strong business fundamentals and the continued backing of our parent companies, we are confident in securing the financing the project requires," Harris said in an email. "We will disclose our financing arrangements on a regular basis and build this plant transparently, working closely with our stakeholders."

He also blamed some of the delays on the Minnesota mine's construction on "anti-competitive conduct" by Cleveland-Cliffs. Mesabi Metallics sued the rival steelmaker in 2017 for alleged antitrust violations, including pressuring contractors not to work for Mesabi. That case is still pending.

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