Mesabi Metallics is seeking up to $5.6 billion in damages from Cleveland-Cliffs for impeding Mesabi from building its iron ore mine, beneficiation plant and pelletizing plant in Nashwauk, Minnesota
[NASHWAUK, MN] – Mesabi Metallics Company LLC (Mesabi Metallics) announced that the United States District Court in Delaware granted Mesabi Metallics’ motion to transfer its antitrust case against Cleveland-Cliffs to the trial court, setting the stage for a trial to adjudicate Mesabi Metallics’ claims that Cleveland-Cliffs unlawfully impeded Mesabi Metallics from building its iron ore mine, beneficiation plant and pelletizing plant in Nashwauk, Minnesota.
The court also denied Cleveland-Cliffs’ request for permission to appeal the summary judgment ruling last September that there is sufficient evidence for a jury to find that Cleveland-Cliffs caused Mesabi Metallics antitrust injury and that the case should move forward to trial. The ruling also leaves in place the lower court’s September ruling that Cleveland-Cliffs was a monopolist in the market for blast furnace pellets in the Great Lakes region at the relevant time.
The United State District Court in Delaware agreed with the lower court that there is “ample support in the record” for the claim to proceed to trial, including evidence that “Cliffs interfered with ‘important’ Mesabi vendors, ‘harm[ing] Mesabi’s efforts to obtain financing’ and complete its project,” Cliffs’ acquisition of property had “potential anti-competitive effects” such as “‘diminishing the value of the project by 70 percent,’ ‘increas[ing] Mesabi’s operating costs,’ and ‘caus[ing] difficulties for Mesabi in presenting itself as a viable entity to potential’ investors” and “Cliffs acquired property ‘to prevent Mesabi from completing its project.'”
Mesabi Metallics’ experts calculated that Cleveland-Cliffs caused Mesabi Metallics damages of about $1.9 billion. The final damages amount will be determined by jury after trial, an amount that would be trebled automatically under federal antitrust law.
In the opinion from February 14, 2025, the United States District Court in Delaware agreed with the lower court that “this case must now move to the district court” for trial. The full court opinion is attached.
“Mesabi Metallics is pleased that the court is moving forward with our case that seeks to prove that Cleveland-Cliffs illegally interfered in and stalled our project,” said Mesabi Metallics President & CEO Joe Broking. “We are continuing to build and invest in our mine, beneficiation plant and pellet plant in Nashwauk and are on track to begin operations in the first quarter of 2026, creating hundreds of family-sustaining jobs on the Iron Range.”
Mesabi Metallics is constructing a state-of-the-art mine to support a 7 million ton per year beneficiation plant and a 7 million ton per year pellet plant located on over 16,000 acres of land in Nashwauk, Minnesota. The company controls multiple decades of iron ore resources. The project is under construction and is on track to commence operations in the first quarter of 2026. Mesabi Metallics has already invested more than $1.8 billion in this project, which is fully funded by equity, and is further investing about $500 million to complete the project. The total investment of $2.3 billion will be one of the largest private investments ever made in Minnesota.
Mesabi Metallics is part of Essar Group, an industry leader with $9.5 billion assets, about $15 billion revenues and 7,000 employees with operations in the US, UK, India and several other countries in the sectors of Energy, Metals & Mining; Infrastructure; Technology and Services with a significant focus on green investments across all its sectors.
