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Essar Minnesota Names New Chief Executive
07/15/2016 - Essar Steel Minnesota has named a new chief executive to help guide the company through Chapter 11 bankruptcy and to help it complete its US$1.9 billion taconite mine and pellet plant, reports the Minneapolis Star Tribune.
According to the newspaper, industry veteran Matthew Stock is replacing Madhu Vuppuluri, effective immediately.
Essar said in a statement that Stock’s appointment is a significant step toward realizing plans for the stalled mine and pellet plant, which, when finished, is to produce approximately 7 million tons annually.
“The experience that Matthew brings to the table is a critical ingredient in our strategy to finally realizing the vision we originally had when we first began investing in this important Minnesota project," said Prashant Ruia, a member of Essar Minnesota’s board and a director of Essar Capital Limited, in a statement.
“To get the plant completed under the current circumstances, we recognized that a change in leadership was needed. Matthew will provide the new leadership and SPL will provide the new capital."
Essar Minnesota filed for bankruptcy last week upon learning that the state of Minnesota had decided against extending its public mineral leases, which account for much of the land Essar intended to mine. Minnesota officials took that step after the company missed a deadline to reimburse the state for incentives related to the project, which has run out of money and has been at a standstill since last fall.
Essar nevertheless said intends to finish the project. But it will have to carry forward without the support of Minnesota, which wants iron ore miner Cliffs Natural Resources to take over the project.
And Cliffs Natural Resources chief executive Lourenco Goncalves said the company fully intends to.
During a public meeting Tuesday, Goncalves affirmed his company’s interest in taking over the project, if it can get control of the project site, and building a direct reduced iron plant there, the Duluth (Minnesota) News Tribune reported.
“If (creditors) want to see anything for their money from that site, they have two choices: Help me build an iron plant on the Iron Range, or sell what's there now for scrap. Either way, I'm going to get it," Goncalves said during the meeting, according to the newspaper.
Essar said in a statement that Stock’s appointment is a significant step toward realizing plans for the stalled mine and pellet plant, which, when finished, is to produce approximately 7 million tons annually.
“The experience that Matthew brings to the table is a critical ingredient in our strategy to finally realizing the vision we originally had when we first began investing in this important Minnesota project," said Prashant Ruia, a member of Essar Minnesota’s board and a director of Essar Capital Limited, in a statement.
“To get the plant completed under the current circumstances, we recognized that a change in leadership was needed. Matthew will provide the new leadership and SPL will provide the new capital."
Essar Minnesota filed for bankruptcy last week upon learning that the state of Minnesota had decided against extending its public mineral leases, which account for much of the land Essar intended to mine. Minnesota officials took that step after the company missed a deadline to reimburse the state for incentives related to the project, which has run out of money and has been at a standstill since last fall.
Essar nevertheless said intends to finish the project. But it will have to carry forward without the support of Minnesota, which wants iron ore miner Cliffs Natural Resources to take over the project.
And Cliffs Natural Resources chief executive Lourenco Goncalves said the company fully intends to.
During a public meeting Tuesday, Goncalves affirmed his company’s interest in taking over the project, if it can get control of the project site, and building a direct reduced iron plant there, the Duluth (Minnesota) News Tribune reported.
“If (creditors) want to see anything for their money from that site, they have two choices: Help me build an iron plant on the Iron Range, or sell what's there now for scrap. Either way, I'm going to get it," Goncalves said during the meeting, according to the newspaper.
