One of the potential buyers of US Steel Canada told media today that issues of environmental liabilities and pension deficits must be settled during the current bankruptcy protection process, as part of the bid.
ERP Compliant Fuels, the second-largest producer of metallurgical coal in the US, is in the running to purchase the beleaguered mill, said he wanted to avoid the same problems that occurred when US Steel bought the former Stelco plant in 2007.
“If we’re going to avoid Stelco 3, we need to deal with the issues right now,” said ERP’s founder Tom Clarke in a media interview Tuesday between meetings with stakeholders participating in US Steel Canada’s restructuring.
Clarke said his bid to buy the company would address the pension deficit, while also implementing the clean-up of environmental messes in Hamilton and Nanticoke—a process which will likely take 10 years and cost as much as $1 billion, according to Clarke.
Clarke said US Steel Canada can become financially healthy if the costs of iron ore and coking coal are reduced, and ERP Compliant can sell coal to US Steel Canada at cost. The company is also bidding to buy the closed Wabush Mines in Labrador, along with metallurgical coal assets in Alberta and British Columbia.