SaskPower and SaskEnergy orders buoy EVRAZ during tariff war
By Brian Zinchuk
REGINA – On top of President Donald Trump’s sweeping tariffs against Canadian imports, he’s applied an additional tariff burden on steel and aluminum products. For steel, that’s an additional 25 per cent tariff. And in Saskatchewan, EVRAZ is bearing the burden.
Crown Investments Corp. Minister Jeremy Harrison at EVRAZ on March 18. Government of Saskatchewan photo
The steel and pipe mill on Regina’s north end is getting a bit of a boost from the Government of Saskatchewan by way of some procurement for some of its Crown corporation utilities. On Tuesday, March 18, Crown Investments Minister Jeremy Harrison was at the steel mill to make the announcement.
The province’s Crown corporations are buying Saskatchewan steel to support local jobs, with thousands of pounds of steel and more than a hundred kilometres of pipe recently procured from EVRAZ Steel, according to a government press release.
“The Government of Saskatchewan will always stand up for Saskatchewan’s interests, focusing on pragmatic and sensible solutions, while protecting our jobs, economy and residents,” Crown Investments Corporation Minister Jeremy Harrison said. “By prioritizing the purchasing of local steel for SaskPower and SaskEnergy infrastructure projects, we are helping to keep over 400 hardworking Saskatchewan people on the job right here in Regina.”
SaskPower has negotiated a purchase of up to 10,000 tons of steel from EVRAZ, or the equivalent of three-years’ worth of steel for the Crown, which is used for the construction of transmission structures and other infrastructure that is critical to maintain Saskatchewan’s power grid, according to a government release.
“EVRAZ Canada has been a proud part of Saskatchewan’s economy for nearly 70 years,” EVRAZ Canada Senior Vice President Don Hunter said. “The commitment we are seeing today from the provincial government is a strong signal that the Government of Saskatchewan recognizes the importance of domestic steel manufacturing—not only for EVRAZ’s workers who depend on it but for the broader economy that benefits from a strong and resilient supply chain.”
Collaboration between SaskPower and EVRAZ, along with steel structure fabricators, Brandt and JNE Welding, will result in a made-in-Saskatchewan solution that will support the provincial economy while ensuring reliable power for residents and businesses.
“The United Steelworkers have been at the forefront of fighting for our jobs and for our industry,” USW Local 5890 President Mike Day said. “When hearing of commitments like this from the Saskatchewan government, it eases some of the uncertainty our members have been facing.
“Commitments and investments just like these – to buy Canadian – from all forms of government is what the USW has, and will, continue to advocate for in all Canadian infrastructure projects.”
The previous week, Day was on the steps of the Legislature with NDP critics Aleana Young and Sally Housser, calling for action from the provincial government on the steel front.
Currently, EVRAZ is working on an order from SaskEnergy which purchased 125 kilometres of steel pipe through Gateway Tubulars LTD. for the Aspen Power Station project, a new 370-megawatt natural gas power plant near Lanigan. SaskEnergy has procured $79 million from EVRAZ directly or through supplier agreements since 2019.
The Aspen Power Station is a 370 megawatt natural gas-fired power plant being built near Lanigan. While not being built exclusively for the nearby mines, the nearby BHP Jansen Lake potash mine is expected to require 300 megawatts when in full operation. Thus, that’s a lot of power that needs to be moved around the grid in central Saskatchewan.