The Minnesota Supreme Court has upheld the state's decision to terminate mineral leases for Mesabi Metallics' long-delayed iron ore project near Nashwauk.
That paves the way for the Minnesota Department of Natural Resources (DNR) to reassign Mesabi Metallics' state leases. The Iron Range's biggest mining companies — Cleveland- Cliffs and U.S. Steel — have shown keen interest in them, particularly the former.
"We are anticipating there will be potentially multiple parties interested in these state leases," Barb Naramore, the DNR's deputy commissioner, said Wednesday.
The Supreme Court late Tuesday rejected Mesabi Metallics' petition to review an October decision by the Minnesota Court of Appeals. The appellate court had affirmed a lower court ruling that upheld the DNR's termination of Mesabi Metallics' state ore leases.
The DNR in May 2021 canceled the leases after Mesabi missed the deadline for a $200 million down payment to complete its half-finished taconite plant. Without the leases, Mesabi Metallics' project doesn't appear viable.
Still, the company said in a statement that the project "remains compelling and exciting. ... Mesabi Metallics intends to do everything it can to keep its project moving forward."
Mesabi said it is in "advanced discussions" in forming a new joint venture that would provide "hundreds of millions of dollars" in new equity financing. Mesabi did not name the joint venture partner.
The Nashwauk project, announced in 2003, has languished for years as its backers have repeatedly run into financial problems.