Sierra Club Urges Clean Energy, Union Jobs Conditions in Mesabi Metallics Incentive Deal

Letter Calls for Credible, Enforceable Provisions in any Taxpayer-Funded Package

DES MOINES, Iowa – In a letter to Iowa Economic Development Authority, the Sierra Club Iowa Chapter is urging state officials to ensure any taxpayer-funded incentive package for Mesabi Metallics’ steel mill must include provisions that benefit the public, not just an unconditional handout for industry. The letter suggests terms that would limit health- and climate-harming pollution and create good-paying union jobs, while avoiding higher energy costs or a strained electrical grid.

Among its recommendations, Sierra Club is calling on Mesabi Metallics to procure new renewable energy to meet its electricity needs, ensure the cost of new power generation and electric infrastructure required for the facility does not negatively impact residential ratepayers, and implement energy efficiency measures and electrify as much equipment as possible.

The letter also calls for strong pollution controls, including measures to limit fugitive dust; covered and zero-emissions trucks; and enclosed indoor storage for ore, scrap, slag and other materials and waste. Sierra Club further urges the company to establish a credible pathway to using 100% green or geologic hydrogen in its direct reduction process.

Beyond environmental protections, the letter emphasizes the importance of ensuring the project benefits workers and surrounding communities. Sierra Club is calling for minimum local hiring commitments, a pledge not to interfere with workers’ efforts to organize a union, fair labor negotiations, and workforce training partnerships with local universities, community colleges and high schools.

In reaction, Director of Sierra Club Iowa Chapter Pam Mackey Taylor issued the following statement:  

“If Iowa is going to offer public incentives to a major industrial project, Iowans deserve enforceable commitments that protect their health, lower pollution, support good union jobs and deliver lasting benefits to local communities. Public dollars should come with public benefit and accountability. These commitments must be credible, put in writing and backed by real consequences if the company fails to deliver. We know Iowa can attract businesses on the cutting edge of clean American manufacturing, and while we can offer incentives to ensure these companies build here, we can also not sacrifice healthy communities and a just economic future in the process.”