Essar group company Mesabi Metallics will establish a $15-billion integrated steel complex in Iowa, connecting the proposed plant with its iron ore mine and pelletising facility in Minnesota. The company has already invested nearly $3 bn in the Minnesota operations.

The investment announcement was made by US President Donald Trump at the White House on Monday evening in the presence of Essar group founder and vice-chairman Ravi Ruia and Mesabi Metallics chairman Rewant Ruia. The project is intended to create an integrated domestic supply chain, with iron ore mined, steel melted and finished products supplied within the US market.

Essar said the Iowa complex would represent the largest single-location investment in an integrated steel complex in American history. The company said the development would support a fully integrated steel business and strengthen Mesabi Metallics’ position in the US steel industry.

Mesabi Metallics recently opened what the company described as the first new iron ore mine built in the US in 50 years. Located in Nashwauk on Minnesota’s Mesabi Iron Range, the mine is expected to produce Patriot Pellet, a direct-reduction-grade iron ore pellet designed for electric arc furnace steelmaking.

Ravi Ruia said the investment would mark a new phase in Essar’s international expansion and extend the vision of his late brother, Shashi Ruia, to build businesses with a global presence. Rewant Ruia said the project would connect Minnesota’s iron ore resources with steelmaking in Iowa and establish Mesabi Metallics as a significant participant in the American steel sector.

The announcement follows Trump’s statement in March that Reliance would develop an oil refinery at the Port of Brownsville in Texas with an investment of at least $60 bn and capacity of 168,000 barrels per day. Reliance has not publicly acknowledged or denied that announcement and has not informed stock exchanges about it.