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Stelco Announces $30 million federal government contribution to cogeneration projects
Stelco Announces $30 million federal government contribution to cogeneration projects.
About this update from Starr Peak Mining Ltd
[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Nov. 23 /CNW/ - Stelco Inc. (TSX:STE) today announced that\nthe Government of Canada has agreed to contribute $30 million to the cost of\nthe proposed near-term electricity cogeneration projects that form part of the\nCompany's critical capital expenditure program.\nThe contribution will be made through Environment Canada's Partnership\nFund, an initiative announced in the 2005 Budget with the goal of facilitating\nproject-specific climate change investments. It is expected that the funding\nwill be provided during the first quarter of 2006.\nThe projects at Stelco's Hamilton and Lake Erie facilities are designed\nto reduce the cost of electricity to the Company, make Stelco more energy \nself-sufficient, utilize waste-gas fuels generated by the production process,\nand reduce emissions into the atmosphere. The federal contribution represents\napproximately 60% of the initial cost of the Company's near-term cogeneration\nprojects. Stelco has committed to spend $50 million towards those projects in\n2006.\nCourtney Pratt, Stelco President and Chief Executive Officer, said,\n\"We're delighted that the Government of Canada has elected to participate in\nthese important cogeneration projects. These initiatives will provide economic\nbenefits to the Company, reduce greenhouse gas emissions and advance the\nstated public policy objectives of the Partnership Fund.\n\"I want to thank everyone who worked so hard to achieve this\ncontribution. Particular thanks go to the Hon. Tony Valeri, MP for Hamilton\nEast-Stoney Creek and Government House Leader in the House of Commons. He and\nhis staff have worked closely with Stelco and with other stakeholders\nthroughout our restructuring process. Their efforts, as reflected in today's\nannouncement, will assist the Company in implementing its restructuring, and\nwill assist the communities in which it operates.\"\n\"The federal contribution and the cogeneration projects are important to\nStelco's restructuring and to its future,\" Mr. Pratt noted. \"They will assist\nin the implementation of our four-point strategic plan announced in July 2004.\nTogether with expansion of the hot strip mill at Lake Erie and a new pickle\nline in Hamilton, the cogeneration projects will play a significant role in\nmaking Stelco a more competitive and viable steel producer for the long term...