Essar Steel's US arm, Essar Steel Minnesota (ESML), has achieved financial closure for its iron ore pellet project.

The US$ 1.8 billion project is coming up at the Mesabi Iron Range region of Minnesota. The plant will have an annual production capacity of seven million tonne.

ESML has succeeded in reaching a major financial milestone by closing the financing to complete construction of its fully permitted open-pit iron ore mine, crushing, concentrating and pelletising facilities.

The mine reserves are expected to last over 70 years. ESML has an aggregate of approximately 1.8 billion tonne of measured and indicated magnetite iron resources, of which approximately 1.7 billion tonne are classified as proven reserves.

The iron ore pellet plant, set to commence production of taconite pellets in the second half of 2015, has already invested approximately US$ one billion in the project, till date.