Essar Steel Minnesota, the US based-arm of Indian conglomerate Essar Group, has tied-up $1 billion to fund its expansion plans.
"The financial closure for the $1 billion investment proposed till August 2012 had been achieved recently," Essar Steel CEO Malay Mukherjee said here today.
The project involves open pit mining, beneficiation and a pelletisation plant of 7 million tonne expected to be operational by August 2012.
Essar Steel Minnesota LLC has access to iron ore resources of over 1.4 billion tonne.
The company plans to set up an integrated steel plant on the Mesabi iron range in northeast Minnesota. The estimated cost of the project was $1.65 billion. The plant would have an annual capacity of 2.5 million tonne per annum (MTPA) when completed.
Speaking about the Indian operation at Hazira, Mukherjee said, "The plant capacity will increase to 8 million tonne by March 2011 and 10 million tonne by 2012 from 5 million tonne."
Essar said the first phase of beneficiation and pelletisation plant of six million tonnes would be completed by December and similar capacity would be added in financial year 2012.