NASHWAUK, Minn. — Gov. Mark Dayton has extended the deadline for a company to come up with financing to finish the Essar Steel taconite mine and processing plant in Nashwauk.

Chippewa Capital Partners won the bidding for the former Essar site in federal bankruptcy court in July. The Minnesota Department of Natural Resources agreed to give Chippewa Capital critical state mineral leases, but the company was to secure $850 million in financing by the end of August.

Minnesota Public Radio News reports Dayton has extended that deadline another 30 days. And, if the company cannot come up with financing by then, the DNR will regain control of the leases.

Essar broke ground on the project nearly ten years ago. But after investing nearly $2 billion, Essar struggled to pay contractors and finally filed for bankruptcy last year.

Information from: Minnesota Public Radio News,

Author photo
The AP is one of the largest and most trusted sources of independent newsgathering. AP is neither privately owned nor government-funded; instead, as a not-for-profit news cooperative owned by its American newspaper and broadcast members, it can maintain its single-minded focus on newsgathering and its commitment to the highest standards of objective, accurate journalism.