Steel Mills

Algoma Extends Iron Ore Purchase Agreement with U.S. Steel
Written by Laura Miller
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
Read more from Laura MillerLatest in Steel Mills

Cliffs talks DOE funding, blast furnace relining schedule
The future of two projects supported in part by funding through the Department of Energy remains uncertain.

Cleveland-Cliffs open to asset sales
Meanwhile, its Canadian operations have been hurt by the broader tariffs proposed by the United States.

As Q1 loss balloons, Cliffs pledges to cut costs, streamline operations
Cleveland-Cliffs Inc. gushed red ink in the first quarter, and pledged to stem the bleeding by idling inefficient, “loss-making operations” and increasing focus on its core automotive business.

Cliffs plans to idle three mills, cut 950 jobs on ‘insufficient demand and pricing’
Cleveland-Cliffs plans to indefinitely idle its steel mill in Riverdale, Ill., as well as mills in Conshohocken, Pa., and Steelton, Pa. The Cleveland-based steelmaker said all three facilities would be idled on or around June 30. Approximately 950 jobs will be impacted, the company said.

CRU: Usiminas may reduce capex unless government strengthens protection
“The lack of effective measures to create fair competition, amid a surge in subsidized imports, is the main threat to the sustainability of Brazil’s steel industry and its value chain,” CEO Marcelo Chara said.