Algoma Steel Settles Oil Spill Charges in St. Marys River

Steelmaker reaches agreement with authorities after 2022 lubricant release into waterway

Mar. 15, 2026 at 1:06am

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Algoma Steel has tentatively settled charges laid against it after an oil-based lubricant spill into the St. Marys River in Sault Ste. Marie, Ontario in June 2022. The company says it has implemented operational and procedural enhancements following the incident and expects the settlement to be finalized without a material financial impact.

Why it matters

Steel producers like Algoma are subject to strict environmental regulations, and spills into local waterways can have significant impacts on the surrounding community and ecosystem. This settlement highlights the importance of industrial facilities maintaining robust safety protocols to prevent such incidents.

The details

In June 2022, Algoma Steel experienced a release of an oil-based lubricant from its hot mill facility, with a quantity of the material entering the St. Marys River. Provincial and federal regulators investigated the spill and laid charges against the company under environmental legislation. Algoma has now reached an agreement in principle with authorities to resolve the matter, subject to final documentation and approvals.

  • On June 9, 2022, the oil spill occurred and was first reported around 8:30 a.m.
  • Later that morning on June 9, 2022, Algoma Steel confirmed that oil from its site had entered the St. Marys River.

The players

Algoma Steel

A Canadian steel producer based in Sault Ste. Marie, Ontario.

Ministry of Environment, Conservation and Parks

The provincial government agency responsible for environmental protection in Ontario.

Canadian Coast Guard

The federal agency responsible for maritime search and rescue, environmental response, and other coast guard services in Canada.

City of Sault Ste. Marie

The municipal government of the city of Sault Ste. Marie, Ontario, where the oil spill occurred.

Algoma Public Health

The local public health agency that advised residents to avoid using the St. Marys River for recreational purposes following the spill.

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What they’re saying

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

— Algoma Steel

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

— Algoma Steel

What’s next

The settlement process is not yet complete, but Algoma Steel expects the matter to be concluded on the basis of the agreement in principle reached with authorities.

The takeaway

This incident highlights the importance of industrial facilities like steel mills maintaining robust environmental safeguards and emergency response protocols to prevent spills that can impact local waterways and communities. The settlement reached by Algoma Steel demonstrates the company's commitment to addressing the issue and implementing improvements to prevent future occurrences.