ENVIRONMENTAL DEFENCE, STEELWATCH, ENVIRONMENT HAMILTON

Toronto | Treaty Lands and Territory of the Mississaugas of the Credit First Nation, and the traditional territory of the Anishinaabeg, the Haudenosaunee, and the Wendat – Environmental groups are demanding clear answers from the owner of Canada’s largest steel mill, ArcelorMittal Dofasco, over continued delays and a lack of transparency surrounding the company’s flagship decarbonization project at its Hamilton facility.

ArcelorMittal Dofasco committed in 2022 to transition away from coal-based steelmaking to Direct Reduction of Iron (DRI) technology by 2028, pledging to cut emissions by more than 60 per cent. More than three years into the project timeline, there has been little to no progress on the ground.

Last week, CBC Hamilton confirmed that fundamental changes have been made to the project, reporting that the proposed DRI facility at the heart of the project would not be built and that the federal government has pushed their funding agreement with the Hamilton steel plant from 2028 until 2050.

At ArcelorMittal Dofasco’s quarterly Community Liaison Committee meeting, company management failed to provide basic information about the revised project plan or a credible timeline. Management repeated that the project remains in an “engineering phase” and cited tariffs and business uncertainty, offering no further detail.

ArcelorMittal Dofasco is Ontario’s single largest source of industrial greenhouse gas emissions, releasing 4.16 megatonnes of carbon pollution in 2023. The facility is also a major source of local air pollution. Provincial filings show that in 2023 the plant emitted benzene and benzo[a]pyrene — both known carcinogens — at levels far exceeding provincial guidelines.

ArcelorMittal must end the silence, disclose a clear and credible plan, and stop delaying action while Hamilton residents continue to bear the health and climate impacts of coal-based steelmaking.

Keith Brooks, Programs Director, Environmental Defence:

“Hamilton’s Dofasco steel mill is Ontario’s single biggest climate challenge, averaging between 4 and 5 million tonnes of carbon pollution each year. That’s more than half of all climate emissions from all industrial sources in the GTHA. If ArcelorMittal waits until 2050 to decarbonize, they will be committing to another twenty years of coal-burning. That would be a disaster for climate progress in Ontario. It would also represent a failure to build out a ‘climate competitive’ clean steel industry which could feed domestic demand and export markets.”

Evan Ubene, Clean Steel Campaign Coordinator, Environmental Hamilton:

“Every delay of this project means Hamilton residents face an extended timeline of breathing in cancer-causing air contaminants well above levels that are safe. The lack of transparency by ArcelorMittal Dofasco’s management demonstrates that federal and provincial governments need to change their strategy, otherwise community members will continue to have to make the unfair choice between cancer-causing pollution and jobs. Millions of dollars of public funds that should have been directed towards supporting workers in a transition away from fossil fuels were set aside for the investments of a highly profitable business. The reward for Hamilton residents could be an additional two decades of burning coal in our backyard. That is unacceptable. The community deserves answers.”

Pascal Husting, Associate, SteelWatch:

“Backtracking on decarbonization commitments is not new for ArcelorMittal. Over the past two years, the company has delayed or walked back multiple decarbonization projects across Europe and the same pattern is now emerging in Canada. On investor calls, ArcelorMittal describes Dofasco as ‘one of the best facilities in the world’ — highly profitable, with strong demand and stable volumes — yet its decarbonization plan remains vague, delayed, and absent from the company’s core business narrative. Canada has all the ingredients to lead on clean steel — clean power, high-quality raw materials, and a skilled workforce. What is missing is the leadership and leadership means investing in the future, not managing decline.”

Background:

  • ArcelorMittal Dofasco presented no substantive updates on their decarbonization project at their January 20th, 2026 Community Liaison Committee (CLC), repeating that the project is progressing through “engineering stages” and that they are proceeding with extreme caution because of the uncertain business climate.
  • In 2022, ArcelorMittal Dofasco committed to phase out their coal-based steelmaking facilities and replace them with a Direct Reduction Iron (DRI) furnace as well as a new Electric Arc Furnaces (EAF).
  • Construction was planned to begin in January 2023 and end in 2026, with $900 million in government support, including $500 million coming from the Ontario government and $400 million more from the federal government.
  • A CBC investigation in August 2024 confirmed that ArcelorMittal had yet to demolish their No.1 coke plant, which was the initial step in their construction process.
  • While the company cites tariff uncertainty as the main cause of project delays, in their most recent quarterly report, ArcelorMittal reported the Dofasco plant prospering despite significant American tariffs.
  • Last week, Innovation Science and Economic Development (ISED) Canada indicated that ArcelorMittal Dofasco had altered their construction plans to sourcing reduced iron from their DRI furnace in Contrecoeur, Quebec rather than building a new facility in Hamilton.
  • The City of Hamilton and local residents have repeatedly requested that the province address local air quality concerns originating from Dofasco’s plant, including two municipal council motions to and a public request for the province to investigate ArcelorMittal Dofasco’s air pollution.

ABOUT ENVIRONMENTAL DEFENCE (environmentaldefence.ca): Environmental Defence is a leading Canadian environmental advocacy organization that works with government, industry and individuals to defend clean water, a safe climate and healthy communities.

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For more information or to request an interview, please contact:

Tamara Latinovic, Environmental Defence, media@environmentaldefence.ca