The Metals Royalty Company (TMCR), a subsidiary of deep-sea mining company The Metals Company and traded on Nasdaq under the ticker TMCR, will obtain a 1% indexed gross overriding royalty on production of up to 8.5 million tons annually from the project under the agreement.
The Mesabi Metallics project is backed by India-based Essar Group and aims to become one of North America’s largest suppliers of direct reduced iron (DRI) pellets. The company stated that the royalty, with a revenue structure linked to iron ore prices, could generate approximately $13 million in annual revenue once full production capacity is reached.
Initial production at the project is planned to begin in the second half of 2026, while full capacity is expected to be reached in 2027.
Following the announcement, TMCR shares fell by more than 2% in New York trading to $15.18, reducing the company’s market value to approximately $888 million.
TMCR CEO Brian Paes-Braga described the Mesabi Metallics investment as a “defining milestone” for the company, stating that the project is one of the most strategic industrial developments underway in the United States.
TMCR, which began trading on Nasdaq in April, had previously operated with a royalty model focused on deep-sea mining. With this agreement, the company has also expanded into industrial minerals linked to the green steel transition.
The company also emphasized that the investment aligns with the United States’ goals of strengthening critical mineral and steel supply chains and reducing dependence on imports.
Meanwhile, it was announced that the U.S. Export-Import Bank could provide up to $10 billion in financing support for the Mesabi Metallics project, while Essar Group has reportedly invested more than $2 billion in the project to date.
Comments
No comment yet.