Algoma Steel announced its extending its iron ore contract with U.S. Steel for two more years.
In a news release, the Sault Ste. Marie steel and plate manufacturer this contract should cover their ore supply to finish the company’s transition from making steel with blast furnace technology to electric arc furnaces (EAF). The contract contains an option for an extra third year.
The EAF complex at Algoma is expected to come online by the end of 2024.
U.S. Steel’s mining arm produces iron ore taconite pellets used in blast furnace operations from its open-pit mines on the Mesabi Iron Range in northern Minnesota. Keetac and Minntac are two of the largest iron ore mines in the U.S., producing 22 million tons of pellets annually.
“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,” said Algoma CEO Michael Garcia in a statement.