Essar Steel Minnesota LLC announced that it has reserves of 1.77 billion tonnes, with a grading of 31.78% total iron, along with inferred mineral reserves and resources estimated at 201 million tonnes, making it a leading iron ore resource party in the North American Basin.

This is confirmed by the National Instrument 43-101 Mineral Resources and Mineral Reserves Report prepared by Met Chem Canada Inc, an internationally renowned consulting engineering firm providing all phases of geology, mining, mineral processing and engineering services.

Mr Madhu Vuppuluri president & CEO of Essar Steel Minnesota said that "The measured, indicated and inferred resources of nearly 2 billion metric tons at Essar Steel Minnesota’s iron ore project exceeded our expectations. We are also pleased to learn that 95% of total measured and indicated resources are made up of mineral reserves. We believe that our project contains sufficient reserves and resources not only to increase the planned production of iron ore pellets from 4.1 million tonnes to 7 million tonnes annually, but also will enable us to evaluate options to further utilize our increased mineral resources."

ESML's project is a taconite iron ore project located at Nashwauk, Minnesota in the western part of the Mesabi Range benefiting from proximity to ports, rail and road connectivity. The project permit area encompasses approximately 19,200 acres.

All permits for the construction and production of 4.1 million metric tons of iron ore pellets annually have been received. Applications have been filed for a second phase expansion to add an additional 2.9 million tonnes of iron ore pellets production annually, bringing the annual capacity to 7 million tonnes. Phase one construction of the iron ore mine, crushing facilities, concentrator and pellet plant commenced in October 2010.

NI 43-101 categorized mineral resources set out in the Technical Report. Met-Chem used 3D Block Modeling techniques to estimate the tonnage and the grade of the mineral resources.
Classification Measured Indicated Measured Indicated Inferred