U.S. Backs $10 Billion Iron Ore Project to Strengthen Ties With India
WASHINGTON — The United States is backing up to $10 billion in financing for a major iron ore project aimed at strengthening strategic ties with India, part of a broader $30 billion push to bolster supply chains and industrial capacity across the Indo-Pacific.
The funding, supported by the U.S. Export-Import Bank (EXIM), was announced during the Indo-Pacific Energy Security Ministerial and Business Forum in Tokyo, where U.S. officials outlined a series of large-scale investments designed to reinforce economic partnerships with key regional allies.
EXIM said its financing initiatives are expected to unlock nearly $30 billion in strategic deals focused on improving supply chain resilience and expanding American industrial reach.
EXIM President and Chairman John Jovanovic attended the forum alongside senior officials including Interior Secretary Doug Burgum and Environmental Protection Agency Administrator Lee Zeldin. Discussions centered on strengthening critical supply chains and advancing U.S. energy and industrial capabilities globally.
A centerpiece of the announcement is up to $10 billion in support for a mining and processing facility being developed by Mesabi Metallics on Minnesota’s Mesabi Iron Range. The project is expected to produce approximately 7 million tons of high-grade direct-reduction iron ore pellets annually, a key input for modern steelmaking and emerging industrial technologies.
Officials said the investment will create hundreds of jobs in the United States while expanding domestic industrial capacity. It is also expected to deepen economic ties with India, particularly in energy, minerals, and industrial supply chains.
The Minnesota project is part of a broader slate of initiatives unveiled at the forum.
EXIM highlighted a $14 billion liquefied natural gas project led by Delfin Midstream Inc., which aims to establish the first offshore LNG export facility in the United States in partnership with companies from Japan and South Korea.
The bank also issued letters of interest for up to $4.2 billion in potential financing for nuclear fuel sales by General Matter to operators in Japan and South Korea. The financing would support the purchase of American enriched uranium for both existing and advanced nuclear reactors, reducing reliance on geopolitical rivals for critical energy supplies.
In Australia, EXIM is backing a critical minerals project led by RZ Resources with up to $550 million in financing. The project is expected to produce titanium feedstocks, zircon, and other key industrial minerals.
EXIM said the initiatives reflect growing coordination among allied economies to secure access to critical minerals and strengthen industrial supply chains. The efforts are aligned with the U.S. “Energy Dominance” strategy, which focuses on expanding domestic production while deepening partnerships across the Indo-Pacific.
The region has become central to U.S. economic and strategic planning, particularly as Washington seeks to reduce dependence on adversarial nations for key materials and energy resources.
India has emerged as a key partner in that effort, with cooperation expanding across energy, manufacturing, and critical minerals as both countries work to build more resilient supply chains and strengthen industrial capacity. (Source: IANS)
