ST. PAUL – Governor Mark Dayton today released the following statement regarding Essar Steel.
“I remain determined that the stalled Essar project be constructed, begin operations, and create new jobs on the Iron Range. My administration and I are currently working closely with the Members of the Range Legislative Delegation to assess all possible options to achieve those objectives. We remain in conversation with Essar Steel, as it works to secure the necessary financing to move forward, which must begin with its paying local vendors in full for the services they have provided.
“The State’s minerals leases for the project are subject to termination on July 1st. If Essar Steel wants those leases to be extended, the company must demonstrate within the next two months that it has secured all of the necessary financing. If Essar Steel fails to fulfill in full its commitments to the State and its vendors by that deadline, the company should not expect the leases to be renewed.
“We have been told by Essar Steel that its parent company, Essar Global, is committing an undisclosed amount of interim funding to meet the company’s immediate obligations. Essar Steel is reportedly also seeking a new equity partner for the project. It remains to be seen whether or not those efforts will be successful.
“In the meantime, I am deeply appreciative of the new initiatives by President Obama and his Administration, Congressman Nolan, Senator Klobuchar, and Senator Franken, to reduce illegal dumping of foreign steel that has destroyed the livelihoods of thousands of people on the Iron Range. Continuing to strengthen those actions is absolutely essential to rebuilding our domestic steel industry, restoring demand for Minnesota’s taconite production, and putting people back to work permanently on the Iron Range.”
