Bankruptcy at Algoma won’t impact iron range
Essar Steel Algoma Inc., Canada’s second-largest producer of integrated steel last year and one of Cliffs Natural Resources biggest customers, filed for bankruptcy last week, hoping to restructure and refinance its debt.
Essar purchases all of its iron ore from Cliffs, which it has a contract with through 2024.
We’re sorry to see this business struggling so much with its finances, but we’re tentatively optimistic Essar’s issues won’t affect us here in Marquette County.
According to a Wednesday article written by Mining Journal Staff Writer Zach Jay, Cliffs officials aren’t too worried about the bankruptcy.
Dale Hemmila, Cliffs’ manager of public affairs for North America, said he doesn’t anticipate there being an impact to Cliffs’ agreement to continue to provide Essar with iron ore as per its contract.
Essar officials also made similar statements in the story.
Brenda Stenta, manager of corporate communications for the company, said “There’s no impact to employee, trade, pension or supplier obligations. It remains business as usual here at Essar Steel – normal production levels.”
That means workers in Cliffs two Marquette County mines – Empire and Tilden – can breathe easy when they come in to work today.
We’re hopeful that Essar can fix its financial troubles sooner rather than later, and that the problems of this company will not affect the operations of Cliffs, one of the largest employers in the area.