Oil-based lubricant entered the St. Marys River in 2022

Algoma Steel has tentatively settled charges laid against it after a lubricant spill into the St. Marys River four years ago.

“On June 9, 2022, the company experienced an incident involving the release of an oil-based lubricant from its hot mill in Sault Ste. Marie, a quantity of which entered the St. Marys River,” the steelmaker said in a report filed this week to regulatory agencies.

“Provincial and federal regulators investigated the incident, and charges were laid under applicable environmental legislation,” the report said. 

“The company has reached an agreement in principle with federal and provincial authorities to resolve these matters, subject to final documentation and required approvals.

“While the settlement process is not yet complete, the company expects the matter to be concluded on this basis and does not anticipate that the final outcome will have a material adverse effect on its financial position.

“Algoma has implemented operational and procedural enhancements following the incident and remains committed to maintaining compliance with applicable environmental regulations,” the company said. 

The spill was first reported around 8:30 a.m. on June 9 near Purvis Marine.

A tanker, the AlgoCanada, was docked there, but Algoma Central Corp. said the spill didn’t originate from that vessel.

Later that morning, Algoma Steel confirmed that oil from its site had entered the river.

“The Ministry of Environment, Conservation and Parks, the Spills Action Centre, the Canadian Coast Guard and the City of Sault Ste. Marie have been notified and we are currently coordinating with officials, deploying equipment, resources and personnel to mitigate any possible impact to the environment,” the company said.

Algoma Public Health then advised all users of the St. Marys River to avoid using the river for recreational purposes (i.e. swimming, kayaking, fishing).

“Please be advised that if your drinking water intake is located in the St. Marys River downstream (east) of Algoma Steel Inc. and Great Lakes Power and/or you have a dug a well close to the shoreline there may be risk of contamination resulting from this spill,” the health agency said at the time.

“Additionally, we advise you not to use the St. Marys River for recreational purposes (i.e. swimming, kayaking, fishing) at this time until further information is provided.”

“Steel producers such as Algoma are subject to numerous environmental laws and regulations including federal and provincial, relating to the protection of the environment,” Algoma Steel said in the report it filed with financial regulators this week.

“The company can incur regulatory liability as well as civil liability for contamination on-site (soil, groundwater, indoor air), contaminant migration and impacts off-site including in respect of groundwater, rivers, lakes, other waterways, and air emissions.”