ST. PAUL, MN – On Wednesday, December 30, 2015, Governor Mark Dayton was notified that Essar Steel Minnesota and its parent company, Essar Global Fund Ltd., have accepted his final offer for repayment of the state’s $66 million loan.

 

“This project is tremendously important to the Iron Range, supporting more than 700 construction jobs and an expected 350 permanent jobs once the plant opens,” said Governor Mark Dayton. “Essar Steel Minnesota CEO Madhu Vuppuluri's willingness to accept the state’s final offer – and repay the loan because it did not live up to the terms of its original agreement – is an important step to move this project forward.”

 

Governor Dayton issued his final offer in a letter sent to Essar Steel Minnesota CEO Madhu Vuppuluri on December 23, 2015, which gave the company until December 30, 2015, to respond. The offer requires Essar Steel to begin making payments on the loan in February 2016, repaying $10 million to the state by the end of March 2016.

 

The remainder of Essar Steel’s $66 million loan will then be repaid in quarterly payments to the state, beginning in 2017. The offer also requires Essar Steel to notify the state of the status of its payments to vendors each quarter.

 

/governor/assets/2015_12_23_essar_loan_repayment_tcm1055-115175.pdfYou can read Governor Dayton’s full offer letter to Essar Steel, sent December 23, 2015, here.