Essar Steel Algoma Ore Inventory Set for Winter

Essar Steel Algoma is approaching the end of one year of protection under the Canada’s Companies Creditors Arrangement Act. The company entered protection on November 9, 2015. The latest court monitor report by Brian Denega, senior vice principle of Ernst & Young, shows the company maintaining its production and stocking up on iron ore for the winter months.

In September 2016, Algoma amended its iron ore supply agreement with Cliffs Natural Resources to provide for additional ore volume to be delivered in Q4 and in January 2017. The agreement was contingent on an amended DIP facility that runs to at least January 15, 2017 and a continued stay of proceedings until that date, both of which have been satisfied. An additional condition by Cliffs was that there would be “no agreement to sell all or a material part of the business or assets of Algoma to an Essar Global entity.”