Algoma Steel Announces Extension of Iron Ore Contract with U. S. Steel to Support Transition to Electric Arc Steelmaking
October 02 2023 - 5:30PM
Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the
Company”), a leading Canadian producer of hot and cold rolled steel
sheet and plate products, today announced a two-year extension of
its existing iron ore purchase contract with United States Steel
Corporation (“U. S. Steel”) (NYSE: X), with an option to further
extend for a third year solely at Algoma’s discretion. The extended
purchase contract is anticipated to cover the expected volumes of
iron ore required to complete Algoma’s transition from blast
furnace to electric arc furnace (“EAF”) steelmaking.
The extension with U. S. Steel represents
another strategic milestone for Algoma as it continues on its
transformative journey toward sustainable steel production through
electric arc steelmaking.
Michael Garcia, Algoma’s Chief Executive
Officer, commented, "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. 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.”
Algoma’s transition to EAF steelmaking marks a
significant step towards reducing its carbon footprint and
contributing to a greener and more sustainable future. This
commitment to innovation and environmental stewardship demonstrates
Algoma's dedication to playing a leading role in the industry's
transition toward a low-carbon economy.
Cautionary Statement Regarding Forward-Looking
Information
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively,
“forward-looking statements”), including statements regarding the
supply of raw materials and other key inputs in the steelmaking
process, Algoma’s transition to EAF steelmaking and the impact of
the contract with U. S. steel thereon, and resulting reduction in
carbon emissions and Algoma’s carbon footprint, Algoma’s future as
a leading producer of green steel, transformation journey, ability
to deliver greater and long-term value, ability to offer North
America a secure steel supply and a sustainable future, and
investment in its people, and processes, plans or future financial
or operating performance. These forward-looking statements
generally are identified by the words “believe,” “project,”
“expect,” “anticipate,” “towards,” “estimate,” “intend,”
“strategy,” “future,” “opportunity,” “plan,” “design,” “pipeline,”
“may,” “should,” “will,” “would,” “will be,” “will continue,” “will
likely result,” and similar expressions. Forward-looking statements
are predictions, projections and other statements about future
events that are based on current expectations and assumptions. Many
factors could cause actual future events to differ materially from
the forward-looking statements in this document. Readers should
also consider the other risks and uncertainties set forth in the
section entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Information” in Algoma’s Annual Information Form,
filed by Algoma with applicable Canadian securities regulatory
authorities (available under the Company’s SEDAR+ profile at
www.sedarplus.ca) and with the U.S. Securities and Exchange
Commission (the “SEC”), as part of Algoma’s Annual Report on Form
40-F (available at www.sec.gov), as well as in Algoma’s current
reports with the Canadian securities regulatory authorities and
SEC. Forward-looking statements speak only as of the date they are
made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Algoma assumes no obligation and
does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. Driven by a purpose to build
better lives and a greener future, Algoma is positioned to deliver
responsive, customer-driven product solutions to applications in
the automotive, construction, energy, defense, and manufacturing
sectors. Algoma is a key supplier of steel products to customers in
North America and is the only producer of discrete plate products
in Canada. Its state-of-the-art Direct Strip Production Complex
(“DSPC”) is one of the lowest-cost producers of hot rolled sheet
steel (HRC) in North America.
Algoma is on a transformation journey,
modernizing its plate mill and adopting electric arc technology
that builds on the strong principles of recycling and environmental
stewardship to significantly lower carbon emissions. Today Algoma
is investing in its people and processes, working safely, as a team
to become one of North America’s leading producers of green
steel.
As a founding industry in their community,
Algoma is drawing on the best of its rich steelmaking tradition to
deliver greater value, offering North America the comfort of a
secure steel supply and a sustainable future as your partner in
steel.
For more information, please contact:
Michael MoracaTreasurer & Investor
Relations OfficerAlgoma Steel Group Inc.
Phone: 705.945.3300E-mail: IR@algoma.com
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