Algoma Steel has inked an iron ore supply agreement with U.S. Steel to keep the Sault Ste. Marie steelmaker swimming in taconite pellets for the next four years.
In a May 14 news release, Algoma said their existing ore contract was set to expire at year's end. The new four-year deal expires at the closing of the 2024 Great Lakes shipping season.
“This contract provides Algoma Steel with a competitive iron ore supply that will sustain our business through the steel market cycle," said company CEO Michael McQuade in a brief statement.
More recent hard times in the steel industry, caused by the pandemic, forced Algoma to lay off 70 employees late last month.
Algoma produces 2.8 million tons a year of sheet and plate steel, predominately for customers in the North American auto industry.