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Mercuria Signs Memorandum of Understanding to Support Minnesota’s Mesabi Metallics
12.09.2018

Global Energy and Commodities Group Targets Expansion in U.S. and Long-Term Job Creation

Transaction To Strengthen $650 Million Financing Package for Completion of Heartland Iron Ore Project

GENEVA, September 12, 2018 - Mercuria Energy, one of the world's largest independent energy and commodities groups, signed a Memorandum of Understanding (MOU) today with Chippewa Capital Partners, LLC (CCP) that envisages Mercuria backing the re-emergence of iron ore producer, Mesabi Metallics Company LLC (Mesabi Metallics), which is currently 100 percent owned by CCP. The investment is intended to support the creation of new long-term jobs in America’s heartland and the century-old iron ore mining district, the Mesabi Range in Minnesota.

The transaction would allow Mercuria to acquire a majority stake in the iron ore producer, which boasts a 7mtpa mine-to-plant pelletization project (the Mesabi Project). Mesabi Metallics has met every key milestone that led to the reinstatement of all its mineral lease rights as confirmed by the Department of Natural Resources (DNR) on July 11, 2018.

Mercuria’s backing and investment into Mesabi Metallics is expected to lead to an acceleration of the engineering, procurement and construction of the Mesabi Project.

“Today’s announcement is part of Mercuria’s ambition to further expand and invest in the United States, playing a greater role in increasing American production capacity, and indirectly supporting the strategic steel sector, which is resurging as the US economy is showing even more robust growth,” said Mercuria CEO Marco Dunand. “This investment can directly support job creation and economic growth in Nashwauk, Itasca County and Minnesota’s Iron Range. Pursuant to this investment, Mercuria plans to employ the highly-skilled workforce in Minnesota, as we do elsewhere in America and internationally in all the ventures that Mercuria operates and bring more efficiency to markets and create reliable alternative physical supply solutions to clients. These, along with the healthy business environment, are the key principles that support the growth of our footprint in the United States.”

“Specifically, the Mesabi investment demonstrates our confidence that – with greater financial strength and stability – Mesabi Metallics can re-emerge as a significant player in the North American pellet and value-added product market segment.”

Mercuria plans to complete its investment into Mesabi upon closing of the acquisition in Q4 2018.

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