HAMILTON, ON, Nov. 23 /CNW/ - Stelco Inc. (TSX:STE) today announced that the Government of Canada has agreed to contribute $30 million to the cost of the proposed near-term electricity cogeneration projects that form part of the Company's critical capital expenditure program. The contribution will be made through Environment Canada's Partnership Fund, an initiative announced in the 2005 Budget with the goal of facilitating project-specific climate change investments. It is expected that the funding will be provided during the first quarter of 2006. The projects at Stelco's Hamilton and Lake Erie facilities are designed to reduce the cost of electricity to the Company, make Stelco more energy self-sufficient, utilize waste-gas fuels generated by the production process, and reduce emissions into the atmosphere. The federal contribution represents approximately 60% of the initial cost of the Company's near-term cogeneration projects. Stelco has committed to spend $50 million towards those projects in 2006. Courtney Pratt, Stelco President and Chief Executive Officer, said, "We're delighted that the Government of Canada has elected to participate in these important cogeneration projects. These initiatives will provide economic benefits to the Company, reduce greenhouse gas emissions and advance the stated public policy objectives of the Partnership Fund. "I want to thank everyone who worked so hard to achieve this contribution. Particular thanks go to the Hon. Tony Valeri, MP for Hamilton East-Stoney Creek and Government House Leader in the House of Commons. He and his staff have worked closely with Stelco and with other stakeholders throughout our restructuring process. Their efforts, as reflected in today's announcement, will assist the Company in implementing its restructuring, and will assist the communities in which it operates." "The federal contribution and the cogeneration projects are important to Stelco's restructuring and to its future," Mr. Pratt noted. "They will assist in the implementation of our four-point strategic plan announced in July 2004. Together with expansion of the hot strip mill at Lake Erie and a new pickle line in Hamilton, the cogeneration projects will play a significant role in making Stelco a more competitive and viable steel producer for the long term." About Stelco Stelco Inc. is a large, diversified steel producer. Stelco is involved in major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses. This news release may contain forward-looking information with respect to the Corporation's business operations, financial performance and conditions. Actual results may differ from expected results for a variety of reasons including factors discussed in the Corporation's Management's Discussion and Analysis section of the Corporation's 2004 Annual Report. To learn more about Stelco and its businesses, please refer to our Web site at www.stelco.ca. %SEDAR: 00001549E