U.S. Steel announced a four-year agreement to sell a “substantial volume” of iron ore pellets to Algoma Steel in Ontario, Canada. The purchase agreement runs from 2021 through 2024 and provides a new long-term customer for U.S. Steel’s Minnesota mines.
Monday’s announcement follows an iron ore purchase agreement with Stelco in April that gives Stelco an option to purchase a 25 percent interest in U.S. Steel’s Minntac iron ore operations.
“Today’s announcement is another example of the continued execution of our ‘best of both’ integrated and minimill strategy. The asset revitalization investments we made across our critical steelmaking assets over the past few years are resulting in enhanced safety, quality, delivery and cost performance as we build on the cost and capability benefits of being an integrated producer,” said CEO David Burritt.
“As we complete our electric arc furnace in Alabama and ultimately continue with our investments in endless casting and rolling at Mon Valley Works and the upgrades to the hot strip mill at Gary Works, we will have fundamentally repositioned our footprint to be the only ‘best of both’ steel producer for the multiple stakeholders that count on U.S. Steel. We look forward to continuing to serve current customers while gaining market share in strategic end markets, like we have done today with our newest iron ore customer.”
Algoma Steel CEO Michael McQuade remarked on the agreement, “This contract provides Algoma Steel with a competitive iron ore supply that will sustain our business through the steel market cycle.”
A spokesperson for Algoma added that the agreement with U.S. Steel is in addition to Algoma’s existing contract with Cleveland-Cliffs and will complete the company’s iron ore requirements.
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