~ Governor says he fully supports state assistance for steel plant project on Iron Range ~ Saint Paul – Governor Tim Pawlenty said today that Essar Global has committed to fully comply with all U.S. and international law, including those prohibiting certain investments in Iran, and that he will support continued state assistance for Essar’s proposed steel project on the Iron Range. After discussions between Essar officials, the Governor’s Office and the U.S. State Department, Governor Pawlenty received a letter today from Essar’s Americas chief executive Madhu Vuppuluri stating that Essar “considers its investments in the State of Minnesota of strategic importance both to Essar and to the State and people of Minnesota.” The letter says that “no investment or firm commitment will be made in Iran, unless and until permitted to do so under the applicable U.S. or international laws.” “We’re pleased that Essar is making this commitment to ensure U.S. law is followed and to keep this important project on track in Minnesota,” Governor Pawlenty said. “When we learned of reports that Essar may have been considering a project in Iran, it was our hope they would set that aside and make assurances they would comply with U.S. law. Essar has now committed to do just that. I look forward to working with the legislature to secure appropriate state support for the project during the upcoming legislative session.” Last week, it was announced that Essar closed a deal to purchase Minnesota Steel and planned to construct a new $1.6 billion steel mine and mill in Nashwauk. As part of the project, Itasca County has been seeking approximately $60 million in state bonding for infrastructure and utility needs for projects in the area. After returning from the state’s first major trade mission to India on Saturday, Governor Pawlenty said that he had been contacted by a U.S. Department of Commerce official while in India regarding a Reuters report published Wednesday, October 24 that said Essar may have been considering construction of an oil refinery in Iran in partnership with the government of Iran.
Governor Tim Pawlenty.
Minnesota Governor Tim Pawlenty said today that Essar Global has committed to fully comply with all U.S. and international law, including those prohibiting certain investments in Iran, and that he will support continued state assistance for Essar’s proposed steel project on the Iron Range.

A few days after Indian company Essar Steel Holdings Limited acquired Minnesota Steel LLC, the governor of Minnesota announced that he "will strongly oppose any effort to provide state financial assistance to companies or entities that engage in prohibited business practices with Iran."  

Governor Pawlenty recently returned from a trip to India.  He learned that Indian company Essar Global Limited is pursuing a project to build a refinery in southern Iran.

There is no official word yet from Essar Group, but Iran's Petroenergy Information Network says Essar Group is expected to take a 60% stake in the project and that Essar's Ravi Ruia was negotiating for the project in Iran last week.

The northern Minnesota project will be the first facility which includes all steps in steel production from iron mining to a US$1.65 billion steel mill.  The Iranian refinery will have a capacity of 300,000 barrels per day and cost $8-10 billion.