Essar Global Ltd, India's leading industrial company, has signed an agreement to acquire Minnesota Steel LLC, a U.S.-based iron ore firm, local media reported Thursday.

According to Daily News Analysis published in Mumbai, the deal will cost Essar Global 80 million to 90 million dollars.

The Minnesota Steel LLC controls 1.4 billion tons of iron ore in the Mesabi Iron Range in northeast Minnesota in the United States.

"Our investment in Minnesota Steel is exciting as it gives us a cornerstone in the North American market. From this we will further expand our global steel business," said Shashi Ruia, Essar Global chairman.

Moreover, the deal marked the first step of Essar Global to setup steel making facility with an annual capacity of 1.5 million tons and investment of 1.65 billion U.S. dollars.

The facility will include iron ore mining, ore processing, direct reduction and steel making on a single site.