Algoma Steel (TSX: ASTL) is reporting further issues at its coke-making plant following the collapse of a utilities structure on Saturday.
The utilities structure that collapsed supported utility piping at the facility, causing a gas main failure within the coke oven. That failure resulted in abnormal gas flaring and air emissions, while effluent from the site entered into nearby waterways.
While the effluent release has been fully contained, further issues at the plant have now been discovered related to the blast furnace after other utilities were used to supply the facility. The blast furnace is now offline, with production slated to restart in two weeks time.
Limited production meanwhile has resumed at three coke producing units.
While the initial incident was not expected to impact operations due to “adequate” coke supply on hand, with the blast furnace also now down, Algoma is expecting “some” impact on shipments. The ultimate level of impact is said to depend on the timeline to resume operation of the blast furnace. Coke production and inventory meanwhile is expected to be assisted by third party suppliers.
Algoma Steel last traded at $11.70 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
