US President Donald J Trump announced on Tuesday that Indian conglomerate Essar Group-backed Mesabi Metallics will invest $18 billion to build a fully integrated steel company in the US, in what the company described as the “largest” single-location investment in an integrated steel complex in US history.

The investment includes a proposed $15 billion steel complex in Iowa, in addition to nearly $3 billion already invested in the company’s iron ore mine and pelletising facility in Minnesota, the company said in a statement.

The company said the project would create a fully domestic steel supply chain, with iron ore mined in Minnesota and converted into steel in Iowa.

More than 8,000 jobs are expected to be created during construction of the Iowa complex, while at least 1,750 full-time employees will be employed once the facility becomes operational.

Mesabi Metallics said the investment is expected to generate $95 billion in total economic output during construction and the first 10 years of operations.

The Minnesota mine, located in Nashwauk on the Mesabi Iron Range, has received nearly $3 billion in investment to date and is the first new iron ore mine built in the US in 50 years, the company said.

It will produce direct-reduction-grade iron ore pellets, branded Patriot Pellet, for supply to the Iowa steel complex.

More than 1,500 construction workers are currently at the Minnesota site, alongside more than 200 full-time employees.

Full-time employment at the mine is expected to reach 350 once it is fully operational.

The Iowa complex will use direct reduced iron (DRI) and electric arc furnace (EAF) technology.

The EAFs will use hot DRI produced at the facility along with scrap steel, with the company saying the combination will reduce energy use and emissions compared with traditional coal-fired blast furnaces.