Lee County Supervisors Approve Tax Incentives for Mesabi Metallics' $15 Billion Iowa Steel Plant

Lee County supervisors unanimously approved a tax incentive term sheet and a resolution supporting Mesabi Metallics' planned $15 billion steel plant in Iowa. Yahoo reported the approval followed a special meeting on November 4 where county officials and company leaders presented the plan and negotiated terms to the public.

What Mesabi Metallics Agreed to Pay Lee County

Under the signed term sheet, Mesabi Metallics Company will pay Lee County $50 million over 20 years in lieu of additional property taxes. The company also guarantees new assessed property value of at least $112 million before it receives any tax rebate. Lee County's incentives are tied to the company's compliance with Iowa Economic Development Authority requirements, after Iowa lawmakers approved up to $1.4 billion in state tax incentives during a special session in October.

Mesabi Metallics has also agreed to host-community payments of up to $10.5 million to offset demand on law enforcement, EMS, public health and engineering services. Emily Benjamin, president and CEO of the Lee County Economic Development Group, said the payments break down as $250,000 when the term sheet is executed, $100,000 per quarter until construction begins, and $375,000 per quarter during construction. Benjamin said the terms mean there is "no debt for the county."

CEO Joe Broking called the project a "generational investment in Iowa" in the company's news release. "Paired with our nearly $3 billion investment in Minnesota, this project creates a fully integrated American steel supply chain—iron ore mined and processed in Minnesota, high-quality steel made in Iowa," Broking said. The company estimates the plant will employ at least 1,750 full-time workers once operational and create around 6,000 jobs during construction, generating $95 billion in total economic output from construction through the first 10 years of operation.

Mesabi Metallics' Minnesota Mine and Financing

According to akta.pro company records, Mesabi Metallics is an Essar Group subsidiary developing a $2.5 billion DR-grade iron ore mine and pellet plant in Nashwauk, Minnesota, spanning more than 16,000 acres with 7 million metric tons of annual capacity targeting electric arc furnace steelmakers. The same records show total funding of $11.4 billion, including a $10 billion Export-Import Bank of the United States financing indication and a $770 million debt round in September 2026.

How the Iowa Project Reached the County Vote

Mesabi Metallics began operations at its Nashwauk iron ore mine and pellet plant in Minnesota in September 2026, the first new U.S. iron ore mine in 50 years, according to BW Disrupt. In July 2026, the company completed its first production blast at the mine, fracturing approximately 211,000 metric tons of ore, Shanghai Metals Market reported. President Donald Trump announced the Iowa project at a September 28 news conference alongside Iowa elected officials, Yahoo reported.

What Comes Next for the Iowa Plant

Mesabi Metallics' Minnesota project has commercial operations scheduled to begin in the third quarter of 2026, according to akta.pro company records. Lee County's incentives remain tied to the company's compliance with Iowa Economic Development Authority requirements.