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First Semi-Annual Report : February 2001

Executive Summary

The Environmental Management Agreement (EMA) entered into by Algoma Steel Inc. (ASI), the Ontario Ministry of the Environment (MOE) and Environment Canada (EC), is a voluntary agreement that compliments the requirements of a regulatory process.

This, the first semi-annual report of the EMA, demonstrates that Algoma is committed to the Agreement and has exceeded the expectations for this period under the Agreement.

ProjectASI CommitmentASI Status as of Feb.1/01
1. Benzene Air Emission Reduction from 1993 Base Year Rate of 432.6 g/tonne Coke50% Reduction by Dec.31/2000 to a Rate of 216 g/tonne Coke64% Reduction to Rate of 152.7 g/tonne Coke
2. PAH Air Emmision Reduction from 1993 Base Year Rate of 21.3 g/tonne Coke20% Reduction by Dec.31/2000 to a Rate of 17 g/tonne Coke51.3% Reduction to Rate of 10.38 g/tonne Coke
3. Blast Furnace Visible EmmisionsStudy/Experiment with flame system. Maximize efficiency of flame system. Report findings this reportEfficiency of current system maximized. Gas/nozzle design researched. Trough covers to be implemented. Gas system planned for modification. Will expand experimentation to evaluate effectiveness of N2 versus natural gas.
4. Annual Cokemaking PlansDevelop an annual plan. Include the plan in this reportPlan developed and implemented for this year 2001
5. PCB DestructionEquivalent volume of in-storage PCB's as of Dec. 31/1999 destroyed by Dec. 31/2005. Begin no later than Dec.31/2001August 2000 destroyed an equivalent volume of 8,300 litres of Askarel PCB's (13,300 kilograms). An additional volume is being planned for year 2001.
6. ASI Boat SlipAssess sediment contamination. Results of assessment and clean-up plan, if required, submit to MOE and EC. Conduct clean-up in 2001, if required.Slip survey and sediment assessment conducted Sept. 2000 Minimal deposition of new sediment since 1995. Sediment quality improved. Dredging clean-up not warranted. Recommended repeat survey and assessment by end of this agreement in 2005
7. ASI LandfillGroundwater monitoring program resume 2001 on 4 year cycle. Submit report to MOE. Efforts continue to reduce load on landfill. Develop long-term slag site operation and closure plan by Feb. 2002.

Groundwater study planned to take place 3rd quarter 2001. Approx. 160,000 kilograms diverted from landfill in 2000 by recycling of wood, paper and cardboard. Recycle average 500,000 tonnes steel.

Initiating drafting of long-term operation and closure plan

8. Mercury RecyclingRecycle all in-storage mercury by Dec. 31/2001Approx. estimate of accumulated volume made. Initiating disposal options in 2001
9. Environment Code of Practice for Integrated Steel MillsReview code by Dec.31/2000. Develop strategy by June 30/2001 to implement achievable items in code within timeframe of EMA. Provide annual implementation status reports

Completed code review by Dec.31/2000.

Algoma is currently achieving half the recommendations Additional review of remaining recommendations will be ongoing.