~ Governor Pawlenty’s statement regarding Essar Global-Iran connection ~
Saint Paul – The following is a statement from Governor Tim Pawlenty regarding reports that Essar Global, who recently acquired Minnesota Steel, may be engaged in discussions, plans, or activities that may constitute or lead to prohibited business practices with Iran:
"Earlier this week, Essar Global announced it closed a deal to purchase Minnesota Steel and that it planned to construct a new $1.6 billion plant in Northern Minnesota.
"Since that time, I have learned that Essar companies may be engaged in discussions, plans, or activities that may constitute or lead to prohibited business practices with Iran.
"The information available regarding these matters is somewhat murky. However, the information that is available raises serious questions and concerns.
"Unless and until these matters are resolved to my full satisfaction and that of the United States government, I will strongly oppose any state assistance for the Essar Steel plant project.
"Itasca County is seeking state bonding for utility infrastructure to support the project.
"Iran is a terrorist state. Actions by Iranian groups or individuals have killed American soldiers and many other innocent people.
"I will strongly oppose any effort to provide state financial assistance to companies or entities that engage in prohibited business practices with 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.