No proceeds from $125 million of state general obligation bonds will be disbursed to a proposed steel mill in northeast Arkansas until the steelmaker spends $250 million for construction of the project, the state’s top economic development official told lawmakers last week.

Grant Tennille, executive director of Arkansas Economic Development Commission, said the bonds would not be issued until Big River Steel LLC establishes a $300 million escrow account and obtains $700 million of financing for the $1.1 billion facility.

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