The company is building an open pit mine, concentrator and pellet plant in Nashwauk, and a planned direct reduced iron facility and a plant to cast steel slabs.
US-based Minnesota Power, which provides electricity to the city of Nashwauk, said that the move will increase its wholesale electric sales.
The electric utility signed a new long-term municipal agreement to provide electricity to Nashwauk in February this year.
Nashwauk is one of 16 municipalities in northern Minnesota that buys electricity on a wholesale basis from Minnesota Power.
The electric service agreement between Essar and Nashwauk runs through at least April 2022.
