Dayton Sets Payment Deadline for Essar Steel
Minnesota Governor Mark Dayton has set a firm deadline for Essar Steel to repay the state’s $65.9 million loan.
In a letter to Madhu Vuppuluri, President and CEO of Essar Steel Minnesota, Dayton demands his terms be accepted in writing by Essar by December 30.
Governor Dayton is demanding that Essar repay $10 million to the State through Itasca County in two payments: $3.4 million due 45 days from December 23, and $6.6. million by March 31, 2016.
Dayton is also asking for Essar to repay $55.9 million in sixteen quarterly payments beginning March 31, 2017.
The terms, according to Dayton, are the state’s final offer to Essar for repayment.
Essar recently made good on payments owed to contractors and suppliers.
Essar Steel representatives say they are committed to completing construction on their facility and beginning taconite pellet production by the end of 2016.
The $1.9 billion dollar project is expected to bring in more than 300 jobs to the Iron Range.