Algoma Steel says EAF construction on track

Sault Ste. Marie, Ontario-based Algoma Steel Group Inc. has announced results for the first quarter of its 2023 fiscal year, showing growth in net income and revenue compared with one year earlier.

Algoma says in its 2023 first quarter, which ended June 30, 2022, its net income of CAD$301.4 million ($234.6 million) represents a 48 percent increase from the CAD$203.6 million ($158.5 million) earned one year earlier. Its revenue in the most recent quarter of CAD$934.1 million ($727.2 million) is up 18.4 percent from the CAD$789.1 million ($614.3 million) earned in the comparable quarter one year ago.

In notes accompanying its results, Algoma Steel says its project to replace its existing blast furnace and basic oxygen steelmaking operations with two new electric arc furnaces (EAFs) “remains on schedule and on budget.”

The project, approved last November 2021, has been estimated to carry a CAD$700 million ($545 million) price tag. “Following the transformation to EAF steelmaking, Algoma’s facility is anticipated to have an annual raw steel production capacity of approximately 3.7 million tons, matching its downstream finishing capacity, and reducing the company’s annual carbon emissions by approximately 70 percent,” states the firm.

Michael Garcia, CEO of Algoma Steel, says, “The momentum we established in fiscal 2022 continued with another quarter of strong results in what has been a volatile operational environment. Our results continue to reflect our differentiated execution, along with the hard work and dedication of the entire Algoma team.”

He continues, “This summer has been a busy time for Algoma. The construction of our transformative electric arc furnace project continues on budget and on time towards a targeted startup in 2024. Our discussions with United Steelworkers Local 2251 regarding a new labor agreement are ongoing, and the recent 15-day extension of those talks demonstrates the willingness and desire of both sides to reach a fair and equitable agreement. We are operating the facilities normally while these talks continue and look forward to working together as we advance our collective strategy of becoming one of North America’s leading producers of green steel.”