Steel Mills

Algoma Extends Iron Ore Purchase Agreement with U.S. Steel

October 3, 2023

Algoma Steel Group has extended its iron ore purchase agreement with U.S. Steel for another two years.

The contract extension should provide the Canadian steelmaker with enough ore to cover its needs before making its final transition to electric-arc furnace (EAF) steelmaking next year.

Algoma currently has two blast furnaces (BFs): The No. 7 BF has a daily capacity of 8,400 tons of iron. The No. 6 BF has a capacity of 3,000 tons of iron per day but is idle, according to SMU’s blast furnace status table.

As you will recall, Algoma is transitioning away from steelmaking via the blast furnace route. It is currently building two EAFs at its campus in Sault Ste. Marie, Ontario. The EAF project is on track for commissioning late in 2024.

Algoma said in a statement on Tuesday, Oct. 3, that the new contract with the Pittsburgh-based steelmaker and iron ore miner includes an option to extend it for a third year “solely at Algoma’s discretion.”

“We are excited to extend our partnership with U.S. Steel, which we believe not only reinforces our strong collaboration but also aligns with our broader mission of transitioning to more sustainable steelmaking practices,” Algoma CEO Michael Garcia commented.

“We believe that the extension of this agreement provides the foundation for a reliable supply chain and uninterrupted access to essential raw materials to meet our production capacity and service the demands of our valued customers throughout North America,” he added.

Garcia recently spoke at an industry conference, elaborating on the steelmaker’s switch to greener steelmaking.

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.