September 12, 2018 / 2:39 PM / 2 months ago

Mercuria to grow iron ore business with major financing of U.S. mine

LONDON, Sept 12 (Reuters) - Global commodities trader Mercuria Energy Group is expanding its iron ore business with a $650 million financing package for U.S. producer Mesabi Metallics Co in exchange for a majority stake in the firm, Mercuria said in a statement on Wednesday.

The Geneva-based firm said it had signed a memorandum of understanding with Chippewa Capital Partners that currently owns 100 percent of Mesabi.

Mesabi has a 7 million tonne per year mine-to-plant pelletization project in Minnesota, United States.

Mercuria expects to complete the investment in the fourth quarter of this year. (Reporting By Julia Payne; Editing by Emelia Sithole-Matarise)

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