Ever since the projected cost of Algoma Steel's electric arc furnace jumped dramatically eight months ago, the investment community has pressed for assurances the price tag won't escalate further.
Garcia said the first prices Algoma locked in were for Danieli & C. Officine Meccaniche furnaces and Walters Group Inc.'s contract for building construction. "We went through the iteration with the contractors to make sure they had all the details they needed. We started thinking of how to take costs out."
In notes prepared for a presentation to the BMO 33rd Global Metals, Mining & Critical Minerals conference in Hollywood, Florida, Garcia declared his company had "significantly de-risked critical EAF enablers including construction, electricity and metallics."By installing two EAFs, Algoma Steel will no longer need its No. 7 blast furnace and coke ovens, improving product mix, reducing fixed costs, increasing production capacity and improving its environmental footprint.
"Algoma has made substantial progress on the development of the local 230KV line with PUC Transmission. Algoma has received significant support and commitment from the Ontario government on installing regional bulk power upgrades by 2029."