President confirms Mesabi plans for Iowa

(Editor's note: Additional information has been added to this story as reactions come in from around the area. The story was last updated at 4:45 p.m.)
LEE COUNTY – President Donald Trump confirmed rumors of a possible steel mill facility in Lee County in a national address Monday afternoon from the Oval Office.
Trump told the nation that Mesabi Metallics has announced their intentions to build the largest steel plant in American history in Green Bay Bottoms in Wever, investing close to $15 billion in the facility which will likely be two electric arc furnaces converting scrap steel and ore into fresh steel.
According to a statement from LS2group out of Ankeny, the project would likely create 6,000 construction jobs and 1,750 new, permanent, full-time jobs.
The project will create close to $100 billion in total economic impact over the course of construction and the first 10 years of operations.
The President didn't mention Lee County by name but was joined by Attorney General Brenna Bird, U.S. Sen. Joni Ernst, U.S. Rep. Ashley Hinson, and Gov. Kim Reynolds, as well as other national officials including Howard Lutnick, U.S. Secretary of Commerce and officials from Essar and Mesabi Metallics.
Trump said the steel industry is "roaring back to life" because companies don't want to pay tariffs and he said the country is seeing "hundreds of billions of profits" in the steel industry and for the first time in 26 years, the U.S. has passed Japan in steel production.
John Jovanovic, Export-Import Bank Chairman said this is what it will take to deliver the American dream for the next 250 years.
Lutnick said these are steel tariffs at work.
"Without those, the mine and this steel mill don't get built," Lutnick said.
He said now the country is unleashing  iron ore in Minnesota and reducing the dependence on Brazilian ore.
Lutnick said it will create steel at the same price as it is imported from China. 
"This is exactly why you are doing this. This is your plan, living it out in America," Lutnick said.
Lutnick said there was no further negotiation needed on the project. He said the Import-Export bank helped finance the mining work in Minnesota, but the Iowa deal is a "done deal" with private funding.
"This deal is done. They've already worked it out. That's why we're here with the President.  He doesn't bring people together in this room unless it's a done deal," Lutnick said.
The comment lands a little flat considering Iowa House Minority leader Brian Meyer (D-Des Moines) issued a partywide email saying a special session was being considered by House Republicans to consider tax incentives.
Meyer said Monday he hasn't seen any specifics on incentives, but said if there is a special session, "it will help create good-paying jobs in southeast iowa while protecting Iowa taxpayers' interests.
Trump said Mesabi officials are the best people in the world and taking most of the risk themselves.
"We're doing very liitle. It's a phenomenol site with phenomenal people. $18 billion they're spending from the outside - all money from the highest, most respected people in the world. It's pretty amazing," Trump said.
He said the southeast part of Iowa has been "left behind for a lot of wrong reasons."
Chris Wright, Energy Secretary, said the country has been going in the wrong direction for decades.
"Iowa has tremendous, hardworking people and great leaders who believe in high paying jobs," he said.
Rewant Ruia, Mesabi Chairman, said the new supply chain will be from mine-to-melt powered by American energy and built by the talented American workforce.
"This will compete head to head with any facility in the world," Ruia said.
Reynolds thanked the president for his commitment to restoring American dominance in the industry.
"Tough negotiations took place, but the mindset was to get where we are at today. And we couldn't be prouder of being the home of the largest steel plant in the country," Reynolds said.
"This changes the economic trajectory for this area, which is one of the weakest economies in the state," she said. "This is an area that has missed out on a lot of projects because we didn't have the capacity for natural gas."
Ernst said the project is a big "muscle flex" for the country's economic health.
Hinson said Iowa feeds and fuels the world and now will help create American steel. She said those private sector jobs are critical to granular growth.
Congresswoman Mariannette Miller-Meeks, who sponsored the Critical Infrastructure Manufacturing Feasibility Act, aimed at evaluating the importance of producing highly imported products domestically, said Lee County is one of the places she said will benefit directly from the act.
The legislation, which has passed the House and Senate, is ready for the President’s signature. The bill directs the Department of Commerce to study products in high demand across all 16 federally designated critical infrastructure sectors, including energy, communications, transportation, health care, and defense.
"For too long, Iowa families have watched good jobs disappear overseas, taking opportunities and the promise of a brighter future with them. That changes in Lee County." said Miller-Meeks. "This is about more than building a steel plant. It’s about bringing American manufacturing home, creating thousands of good-paying jobs, and giving the next generation of Iowans the opportunity to build their future right here. Iowa is ready to lead the next generation of American manufacturing, and I’m proud to have helped make this historic investment a reality."
Mesabi plans to make the facility part of an $18 billion overall investment in a U.S. fully integrated steel company uniting its iron ore mine  on Minnesota’s Mesabi Iron Range (a $3 billion facility) in Nashwauk, Minn., with the new steel complex in Iowa.
The Iowa Economic Development Authority has a MEGA program that is aimed at attracting these kinds of investments. According to the IEDA website, potential tax incentives that are part of that program include: refundable investment tax credits of up to 5% of qualifying investments; withholding tax credit of up to 3% for eligible new jobs; and refunds of state sales, service, or use taxes paid during construction.
Awards are subject to approval by the Iowa Economic Development Authority (IEDA) Board.
Lee County Supervisors have been fairly closed-lipped about the deal, which would be considered understandable with the size and reach of the project. The county has also hired a law firm out of Des Moines to assist with the high-impact projects in the county. That law firm, BrownWinnick, will likely be assisting the county moving forward on the project.
Lee County Engineer Ben Hull said his department will see a marked staff dedication to the project once it becomes a reality.
“We’ll immediately need to begin in-depth conversations about logistics and the construction period,” Hull said.

“This will be a very large number of workers. Where are they staying, traffic management in the area. I’m presuming we’ll be building roads to help support this. But we learned a lot with IFC and this one would be similar.”
He said there will also be conversations around natural gas extension, electrical service, and rail lines.
“It’s just a lot of coordination between existing entities to include the Koch facility and the grain elevator, working with DOT to make sure everything is safe. There will be heavy haul loads coming off the river and oversize and overweight lanes needed.”
Hull said he anticipates that the 6,000 construction jobs figure is conservative and the project could create the third largest population center in Lee County behind Fort Madison and Keokuk.
“We will have to dedicate staff to it, as will other departments. This will require special attention when it gets rolling.”
Lee County Supervisor Garry Seyb said he's been involved in economic development discussions along with Supervisor Denise Fraise, but the board as a whole, has not engaged in any discussions in a public format.
Lee County Supervisor Chair Ginger Knisley said she's still waiting on county-specific information and doesn't know much more after the press conference than she did before.
"My biggest ambition will be getting concrete information. I don't believe I know any more than I did before the press conference," she said. 
"It's pretty overwhelming to think about what all will be involved, but if it happens, it will change the infrastructure of the county. I assume we're talking about new roads, natural gas lines, and I'm not even sure what that will all involve.  Clearly, we will be very busy and I don't think we'll see another 10 minute supervisor meeting for a while."
District 100 candidate Matt Mohrfeld said the county really is well-positioned for the construction phase, considering a $3 billion fertilizer plant was built about a decade ago.
“That seemed pretty seamless when we built that. Nobody threw their hands up and said this is horrible,” Morhfeld said.
“There’s some big issues here and variables to work out. Electricity and natural gas being a couple of those. But he said this is the epitome of what he’s been saying on the campaign trail that the state needs to look at re-energizing rural Iowa.
“Absolutely, this is the epitome of what I’ve been talking about. Having these projects land in southeast Iowa.”
He said the downside could be an aggressive curve on construction work, housing the influx of workers, and training and workforce development.
“There will be some people who don’t support this – the environmental impact, the social impact, and big questions around corporate welfare. There are growing pains with projects like this,” Mohrfeld said.
Mohrfeld's opponent State Rep. Blaine Watkins (R-Donnellson) issued this statement following the announcement.
"To have one of the largest steel plants in American history built right here in Lee County would be a huge win for our area,” Watkins said. 
“It would mean thousands of high-paying, dependable jobs that would give young Iowans a reason to stay, grow their families, and thrive right here in Southeast Iowa. I’ve been fighting for this kind of opportunity in the Iowa House, and I will fight to get this project over the finish line in the Iowa House."
Lee County's other State Rep. Matt Rinker (R-West Burlington) also issued a statement Monday afternoon.
As a Burlington native, I recognize this announcement for what it is: a once-in-a-generation economic development victory for Iowa,” Rinker said. “Since being elected to the Iowa House, my priorities have included securing high-paying careers to ensure more people can call Iowa home, and keeping our state competitive in manufacturing apprenticeships and training," Rinker said.
"The announcement of one of the largest steel plants in American history built right here in Iowa shows that the work we’ve done at the Statehouse, including reducing the tax burden and keeping government spending fiscally responsible is working. In the House, I will fight to deliver this opportunity for my district."
Lee County Economic Development Group CEO Emily Benjamin declined an interview for this story but issued the following statement.
“We’re excited to see a project of this scale choose eastern Iowa, and we congratulate Mesabi Metallics on today’s announcement. As a matter of public policy, LCEDG does not comment on specific projects or sites until they have been officially committed, so we have nothing further to share at this time.”
State Rep. Brian Meyer (D-Des Moines) the House minority leader said he’s hoping plans for the project, and a possible special legislative session for incentives, will move the state in the right direction.
“I’ve heard from Iowans all across the state who are struggling with high prices of diesel, housing, and groceries, who are looking for relief, so I look forward to reviewing the details of the plan. There is still a lot unknown, but my hope is this will be a step in the right direction to create good-paying jobs while being fiscally responsible,” Meyer said.
State Rep. David Jacoby (D-Coralville), the ranking minority member of the House Ways and Means Committee, said he’s encouraged by the potential project.
“As Iowa families continue to face high costs, we’re encouraged by the potential for new jobs and economic investment in Southeast Iowa. We look forward to seeing the details and making sure any proposal delivers for Iowa workers while protecting Iowa taxpayers,” Jacoby said.
According to a release from LS2group, who is handling the external communications for the project, the project  would create the single largest investment in steel manufacturing in American history.
“This is a major moment for U.S.-made steel, combining the highest quality direct-reduction grade iron ore pellet from Minnesota’s Iron Range with the most advanced DRI to EAF steelmaking technology in Iowa to supply the high-quality, all-American steel that our national defense, cars and trucks, shipbuilding, household appliances, energy, and infrastructure depend on,” said Joe Broking, Chief Executive Officer for Mesabi Metallics. “Mesabi is building a world-class steel supply chain that is 100% American. Our investment will create high-paying jobs with competitive benefits in Iowa and Minnesota, generate tens of billions of dollars in U.S. economic activity, and strengthen our domestic manufacturing base,” Broking added.
The Nashwauk facility will produce Patriot Pellet, the company's direct-reduction-grade (DR-grade) iron ore pellet engineered for modern electric arc furnace steelmaking – one of the highest-quality iron ore pellets made anywhere in the world. More than 1,500 construction workers are on that site today, alongside over 200 full-time employees already working at the mine, building towards 350 full-time jobs once fully operational.
That iron ore – and the Patriot Pellet made from it – will feed directly into the Iowa steel complex, the next link in a fully domestic, mine-to-mill supply chain.
DRI technology involves taking the iron ore mined in Minnesota, removing oxygen at temperatures below its melting point, and creating solid metallic iron. Feeding the DRI into the electric arc furnace while still hot reduces the energy required to melt it, improving the efficiency and productivity of the steelmaking process.
Steel manufacturers in the United States primarily rely on two production processes: integrated blast furnace mills that utilize iron ore from American mines, and highly efficient electric arc furnaces that recycle scrap and imported iron into steel. Mesabi Metallics builds on the strengths of both, by pairing domestic iron ore from its new mine in Minnesota with a modern electric arc furnace steelmaking complex in Iowa. That combination will allow Mesabi Metallics to cost effectively produce a fully domestic, sustainable, high-quality finished steel product.
India-based Essar Group is the parent company of Mesabi and is a multinational industrial group and the project sponsor of Mesabi Metallics, with operations spanning steel, energy, infrastructure, and shipping. Beyond its backing of Mesabi Metallics, Essar's global portfolio includes interests in oil and gas, power generation, ports, and logistics, reflecting decades of experience building and operating large-scale, capital-intensive industrial projects around the world. That experience underpins Essar's role as the project sponsor of the company driving the development of Mesabi Metallics and its investment in American manufacturing.
Gubernatorial candidate Rob Sand issued a statement to Pen City Current on the developments Monday.
"This is a promising idea for Lee County and for our state given that our economy is among the worst in the nation. I look forward to hearing more details, particularly on what protections for Iowa taxpayers will be built into the deal, and what guarantees will exist for Iowa workers to build and work in the plant if Iowa taxpayers will be asked to chip in," he wrote.
"I feel strongly that the next State Auditor – no matter which party they're in – should get to ensure accountability for taxpayers."