Financing supports U.S. critical mineral security and helps reshore the American steel supply chain

NASHWAUK, Minn., March 31, 2026 /PRNewswire/ -- Mesabi Metallics Company LLC (Mesabi Metallics), backed by the Essar Group, today announced that it has entered into a new $520 million senior secured credit facility with Valor Mining Credit Partners II, L.P. (VMP II), a dedicated mining and critical minerals credit fund managed by Breakwall Capital LP (Breakwall) in partnership with Vitol, as it advances toward commercial operations later this year.

Located on more than 16,000 acres in northern Minnesota, Mesabi Metallics is completing a $2.5 billion world-scale merchant Direct Reduction (DR) grade iron ore mine and pellet plant that will onshore a strategically important segment of the U.S. steel supply chain.

With over 750 construction workers currently onsite, the project represents one of the largest private-sector industrial investments in the state's history. Essar Group has already invested over $2 billion of equity into the project. The project has also received support from the U.S. Export-Import Bank (EXIM), underscoring growing federal recognition of the project's strategic importance to U.S. manufacturing and supply chain security for the American manufacturing, automobile, infrastructure, shipbuilding and defense sectors.

"The partnership with Breakwall is an important milestone for Mesabi Metallics," said Joe Broking, President and CEO of Mesabi Metallics. "We are bringing to market a brand-new American source of the highest quality DR-grade iron ore that will help U.S. steelmakers reduce reliance on imported raw materials and international supply chains. America is already the global leader in the next generation Electric Arc Furnace-based steelmaking -- the cleanest and most energy efficient way of making steel. Mesabi Metallics will create hundreds of high-quality jobs in northern Minnesota for several decades to come and will support the reshoring of American industrial dominance."

"Mesabi Metallics is a great example of the type of high-quality company and large-scale mining project we seek to partner on -- anchored by a long-life resource in an advanced stage of development, with strategic importance to critical industrial development. We look forward to building upon this partnership with Mesabi Metallics and supporting them in their journey," said Daniel Flannery, President and Managing Partner of Breakwall. "This deal further demonstrates the breadth of our partnership with Vitol, combining credit solutions with global resource marketing acumen, to deliver a multitude of solutions for top tier companies like Mesabi Metallics and world class operators like the Essar Group," added Jamie Brodsky, Co-CEO and Managing Partner of Breakwall.

About Mesabi Metallics Company LLC

Mesabi Metallics Company LLC, an Essar Group company, is constructing a state-of-the-art mine and Direct Reduction (DR) grade iron ore pellet plant to produce premium DR grade pellets on over 16,000 acres in Nashwauk, Minnesota. Once completed, it will be the first new mine and pellet plant in Minnesota in almost 50 years. Mesabi's DR grade iron ore pellets will be strategically positioned to meet the demand of the Electric Arc Furnace market, ensuring supply chain security for DR grade iron pellets in the United States and replacing foreign imported pellets. The endeavor is one of the largest private sector investments in Minnesota. Mesabi Metallics has already invested over $2.2 billion.

About Breakwall Capital LP

Breakwall Capital is a leading energy specialist focused on direct lending capital solutions to middle-market and developing energy companies. As an independent asset manager and employee-owned firm, Breakwall seeks to fill the gap that other financing providers appear reluctant to service. Breakwall is led by Christopher Abbate, Jamie Brodsky, and Daniel Flannery and since 2014, the Breakwall team has built a credit investment franchise that focuses exclusively on energy credit. During its 12-year history, the team has committed approximately $7.5 billion to energy and energy-related companies or projects across more than 70 transactions. Breakwall is headquartered in New York with offices in Texas and Rhode Island. For more information, please visit Breakwall's website at www.breakwallcap.com.

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