Le Lézard
Classified in: Mining industry, Covid-19 virus
Subject: MERGERS AND ACQUISITIONS (M&A)

The Canada Infrastructure Bank and Algoma Steel Finalize Previously Announced Agreement to Finance Green Steel Transformation Plan


Disponible en français

SAULT STE. MARIE, Ontario, Nov. 29, 2021 (GLOBE NEWSWIRE) -- The Canada Infrastructure Bank (CIB) and Algoma Steel Inc., a subsidiary of Algoma Steel Group Inc. (Nasdaq: ASTL; TSX: ASTL) (Algoma) have entered into a definitive agreement with respect to the CIB's previously announced commitment to finance the transformational upgrade of Algoma's steelmaking processes at its facility in Sault Ste. Marie, Ontario.

Under the terms of the agreement, the CIB will provide up to CDN $220 million in financing towards the approximately CDN $700 million transformation to electric arc furnace (EAF) steelmaking. On November 10, 2021, Algoma's Board of Directors authorized the construction of two new electric arc furnaces to replace Algoma's existing basic oxygen steelmaking operations.

The CIB financing will enable Algoma to purchase state-of-the-art equipment to facilitate the EAF transformation, which is expected to cut greenhouse gas emissions by approximately 70%, representing more than 3 million metric tonnes per year by 2030. This is equivalent to taking more than 900,000 passenger vehicles off the road ? almost the same number of passenger vehicles in Toronto.

Quick Facts

Learn More:
        
www.cib-bic.ca
www.algoma.com

Cautionary Statement Regarding Forward-Looking Statements

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 Algoma's strategic objectives. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "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, including but not limited to: the risks that Algoma will be unable to realize its business plans and strategic objectives, including its investment in electric arc steelmaking, the timing thereof, the availability of electric power and related reduction in emissions; the risks associated with the steel industry generally; and changes in general economic conditions, including as a result of the COVID-19 pandemic. The foregoing list of factors is not exhaustive and readers should also consider the other risks and uncertainties set forth in the section entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in Algoma's public filings, including the registration statement on Form S-1 filed by Algoma with the Securities and Exchange Commission and the prospectus filed with the Ontario Securities Commission. 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.

Media Contacts:

Terence Foran
Canada Infrastructure Bank
tforan@cib-bic.ca

Brenda Stenta
Algoma Steel Inc.
brenda.stenta@algoma.com



These press releases may also interest you

24 jan 2022
The oil and gas pipeline and transportation automation market is set to grow by USD 742.43 million, progressing at a CAGR of 1.72% from 2020 to 2025. The report offers an up-to-date analysis regarding the current market scenario, the latest trends...

24 jan 2022
The robotic lawn mower market is set to grow by USD 697.02 million, progressing at a CAGR of 15.20% from 2020 to 2025. The report offers an up-to-date analysis regarding the current market scenario, the latest trends and drivers, and the overall...

24 jan 2022
OpsVeda, the leading provider of Operations Management Systems, today announced that it has achieved the Service Organization Control (SOC) 2 Type II certification. The certification is the result of extensive evaluation by an American Institute of...

24 jan 2022
Euro Manganese Inc. (the "Company" or "EMN") is pleased to announce that, further to its announcement of May 31, 2021, it...

24 jan 2022
G2 Goldfields Inc. ("G2" or the "Company") is pleased to announce that it proposes to increase its previously announced non-brokered private placement to provide for the issuance of up to 6,800,000 units (the "Units") at a price of $0.45 per Unit,...

24 jan 2022
Rio Tinto, Turquoise Hill Resources (TRQ) and the Government of Mongolia have reached an agreement that will move the Oyu Tolgoi (OT) project forward, resetting the relationship between the partners and increasing the value the project delivers for...



News published on 29 november 2021 at 07:30 and distributed by: