Essar Steel Accepts Gov. Dayton’s Final Offer for Loan Repayment
Essar Steel has accepted Governor Mark Dayton’s final offer for repayment of the state’s $66 million loan.
Dayton was notified Wednesday that Essar Steel Minnesota and its parent company, Essar Global Fund, Ltd., accepted the offer.
Under the terms of the agreement, Essar will 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 also demanded Essar to repay $55.9 million in sixteen quarterly payments beginning March 31, 2017.
Essar will also be required to notify the state of the status of its payments to vendors each quarter.
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.