In a lawsuit filed Friday, the company claims the DNR violated the terms by terminating the leases after the company missed deadlines and requirements.
State agency says additional requirements not met, continues lease termination. 6:18 pm, May 20, 2021 ×
A crane sits next to the partly constructed Mesabi Metallics pelletizing building. (2018 file / News Tribune)
Minnesota regulators reiterated their plans to strip leases from Mesabi Metallics, the proposed iron ore mine and half-built processing plant in Nashwauk, calling the company s lender not credible and discrediting its excuse for not putting up enough cash on time.
In a letter to the company Wednesday, DNR Assistant Commissioner Jess Richards said the company s claim that its funder Mumbai, India-based Essar could only provide $100 million half the required amount in immediately available funds by a May 1 deadline because of the COVID-19 crisis in India was a deliberate choice and not bad fortune.
Minnesota Department of Natural Resources officials told Mesabi Metallics on Wednesday that it failed to meet more conditions of an amended mineral lease agreement, striking the agencyâs most forceful tone to date on the companyâs erratic track record in Nashwauk.
The letter, obtained by the Mesabi Tribune, came on the same day Mesabi Metallics introduced its new public figurehead for the project, Larry Sutherland, who alongside parent company Essar Global said they would ask for a stay on the lease termination process and claimed another $100 million in cash would be available within 48 hours.
Assistant DNR Commissioner Jess Richards wrote in the Wednesday letter that the agency was still completing a review of the documents, but added it had enough to determine that Essarâs debt agreement was contingency based, with a non-credible lender, and claimed the parent company was holding $100 million hostage until the DNR certified the lease amendment.
State agency says additional requirements not met, continues lease termination. 1:22 pm, May 21, 2021 ×
A crane sits next to the partly constructed Mesabi Metallics pelletizing building. (2018 file / News Tribune)
DULUTH Minnesota regulators reiterated their plans to strip leases from Mesabi Metallics, the proposed iron ore mine and half-built processing plant in Nashwauk, calling the company s lender not credible and discrediting its excuse for not putting up enough cash on time.
In a letter to the company Wednesday, May 19, DNR Assistant Commissioner Jess Richards said the company s claim that its funder Mumbai, India-based Essar could only provide $100 million half the required amount in immediately available funds by a May 1 deadline because of the COVID-19 crisis in India was a deliberate choice and not bad fortune.
DNR says lender not credible for proposed iron ore mine in northeast Minnesota inforum.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from inforum.com Daily Mail and Mail on Sunday newspapers.