OREANDA-NEWS. Essar Steel Minnesota LLC (“ESML”) categorically denies that Essar Global Fund Limited (“EGFL”), ESML's ultimate shareholder, is considering selling the business, contrary to recent media reports.

ESML's President and CEO, Madhu Vuppuluri, commented:

“We are very pleased to have closed USD 450 million of bond financing for ESML in the last few weeks. At this significant milestone we look forward to completing ESML's world class 7 million tonnes per annum fully-integrated pellet production facility and to an exciting future for ESML.

“ESML is a world class asset that we believe will be one of the lowest cash cost producers of iron ore pellets in North America. ESML will add 7 million tonnes per annumof pellet producing capacity to EGFL's existing 20 million tonnes per annum of pellet producing capacity operating and under development in India. Accordingly, it is a core investment in the EGFL portfolio.”

Essar Steel Minnesota LLC (“ESML”) is an iron ore producer engaged in the development of a 7 mtpa fully-integrated pellet production facility in the western Mesabi Range in northern Minnesota. When completed, the USD 1.8 billion Project will consist of an open-pit iron ore mine, crushing, concentrating and pelletizing facilities and a rail line and train-loading system. ESML has an aggregate of approximately 1.8 billion tonnes of measured and indicated magnetite iron resources, of which approximately 1.7 billion tonnes are classified as proven or probable reserves, and an additional 0.2 billion tonnes of inferred magnetite iron resources. These estimates are based on ESML's NI 43-101 report.