Will steel slump hurt reef cleanup?

[Spiel]

Will steel slump hurt reef cleanup?

 

 

March 18, 2009

Eric McGuinness / The Hamilton Spectator

 

 

U.S. Steel Canada says it will honour an obligation made by Stelco to supply steel for the cleanup of toxic coal tar around Randle Reef in Hamilton Harbour.

 

But the impending, indefinite shutdown of both the Hamilton and Lake Erie plants raises a question about whether the company will be making steel in Canada in time for the planned start of construction next year.

 

Agencies involved in the harbour restoration have not revealed that the former Stelco made a commitment before being acquired by U.S. Steel. They continue to say they only hope for a cash or in-kind contribution from the new owner.

 

The promise is revealed in a February 2008 U.S. Steel filing to the U.S. Securities and Exchange Commission.

 

It says: "The Canadian and Ontario governments have each made commitments for the environmental remediation of Randall (sic) Reef in Hamilton Harbour. Stelco had committed to supply steel necessary for this project. USSC (United States Steel Canada) has inherited this commitment and has accrued a liability equal to the estimated cost of supplying such steel.

 

"It is possible that additional commitments may be sought or imposed on USSC, but the nature and extent thereof cannot be estimated at this time."

 

Environment Canada and the Ontario Environment Ministry have each pledged $30 million to the $90-million plan to build a double-walled steel structure around the most heavily contaminated sediment, then to dredge up less-toxic mud and put it inside the walls before adding a cap of clean fill. Part of the resulting peninsula would be landscaped, part would become a Hamilton Port Authority pier.

 

The authority hired former federal Liberal cabinet minister Tony Valeri last year to find the $30-million local share.

 

Brent Kinnaird, the authority's market development manager, would not comment on how much has been raised or on the commitment by Stelco.

 

Trevor Harris, speaking for U.S. Steel Canada, said the company realizes the importance of the cleanup and the SEC filing speaks for itself in terms of the company's obligation. Beyond that, he said: "We intend to be a good neighbour in Hamilton and do all we can to help this community thrive for a long time to come. Over the course of the last year and a half, we have demonstrated that environmental stewardship is a core principle of our business."

 

Environment Canada's Tracy Lacroix-Wilson sent an e-mail saying U.S. Steel had "indicated a willingness" to address the coal-tar issue and, "We have received no indication that recently announced changes to the operation of the U.S. Steel plant in Hamilton in any way alter that position.

 

"We will be following up with all parties engaged in the Randle Reef project over the coming months to confirm funding and participation through development of formal agreements.

 

"We anticipate that U.S. Steel will join the governments of Canada and Ontario, the City of Hamilton, the Hamilton Port Authority and potentially other parties in confirming their contributions to the project at that time."

 

Jennifer Hall, on behalf of the Environment Ministry, said: "U.S. Steel recognizes the need to contribute to the project and we are very encouraged with recent discussions about their commitment to help fund Randle Reef with in-kind steel contribution.

 

"The shutdown has had no impact on these discussions and we remain very positive that an agreement will be reached."