Overview

• The package includes C$400 million from the federal Large Enterprise Tariff Loan program and C$100 million from Ontario to sustain operations and limit workforce disruption.
• Financing consists of a C$100 million third‑lien secured tranche and a C$400 million unsecured tranche tied to 6.77 million share purchase warrants exercisable at C$11.08 for 10 years, with a seven‑year loan term and CORRA‑based interest.
• Algoma will hasten the exit of its blast furnace and coke operations and pivot to electric arc furnaces, with the EAF project now expected to cost about C$987 million and output geared to plate and select coil for Canadian buyers.
• Access to the funds remains subject to final documentation and lender approvals, with executives citing U.S. tariffs at 50% as effectively closing the company’s historical U.S. market.
• Ministers cast the support as safeguarding jobs and industrial sovereignty, while the United Steelworkers welcome the aid but call for transparent terms and commitments on product diversification.