State to investigate contamination at Evraz site in Claymont

Next month, the Delaware Department of Natural Resources and Environmental Control will examine the Evraz Claymont Steel site in Claymont for environmental contamination.

Timothy T. Ratsep said the effort came after the Russian steel maker halted production last year at the mini mill that sprawls across more than 400 acres.

A soft market and competition from imported steel was cited as the reason for the decision to close the mill that employed upwards of 400.

Ratsep is administrator for DNREC’s site investigation and restoration section, said that as long as the former Phoenix, Citisteel and Claymont Steel mill operated as a manufacturing site, the assessment was not required. However, the closing changed that status, Ratsep said.

Another factor was evidence of mercury contamination. The contamination may be a byproduct of the company’s use of scrapped vehicles to feed the mill that produced steel plate for construction and other uses.

Ratsep said some of the scrapped vehicles had mercury switches that may have led to the contamination. Evraz also faces financial challenges after going on a buying spree prior to the financial crisis in 2008.

The buyouts that included Oregon Steel and its mills in Oregon and Colorado led to the company become one of the largest steel producers in North America.

Those operations remain in place as the company sees strong demand for steel used in the oil drilling. However, the company has posted losses and has a heavy debt load.

Moreover, it has faced challenges related to the crisis in Ukraine and soft market conditions in Europe and South Africa. An owner of Evraz is Roman Abramovich, one of the reputed Russian “oligarchs” with ties to the government of Vladimir Putin.

Ratsep said the assessments, which will involve a contractor that will be paid about $400,000, will taken months to complete, given the size of the site.

There have been continuing reports that the steel operation could be sold, with the state providing financial assistance. Also, Evraz has not ruled out reopening the mill.

Prices of electric power, a major expense for the mill, have become more competitive. However, the mill faces stiffer environmental requirement that included equipment that was installed by Evraz and controls over dust coming from the site.

Ratsep told the News Journal, the company has not cooperated with DNREC in the environmental assessment.

Evraz paid half a billion dollars for Claymont Steel, an eye-popping amount at the time.