May 19, 2006

Mill cleanup delays

SYDNEY, N.S.

Officials with a company in India say more time is needed to remove the dismantled sections of the electric arc furnace and steel mill at the former Sydney Steel plant site.

Zoom Developers has approached the Nova Scotia government for another extension while it attempts to find a new site for the mill it purchased two years ago.

Sydney Steel president John Traves said Zoom is negotiating with a South American government and they want the deal in place before moving the equipment.

Sydney Steel was able to accommodate Zoom’s delays because demolition and cleanup crews have been able to work around the equipment scattered around the property.

“More delays will mean the overall project itself is delayed. We have work that needs to be done and part of it is getting them out of there,” Traves said.

To date, Sydney Steel has recovered the costs of the delay: “we are not out any money and we are currently negotiating with them on a price for an extension until August.

“I think they now understand our ability to work around the assets in cleaning up the site and redeveloping the site and basically moving forward to an industrial park is at an end.

“I can’t put up a ‘for lease’ sign on the site, it’s time for them to pack it up and get going.”

CANADIAN PRESS

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