OTTAWA - Algoma Steel Group Inc. is set to receive half a billion dollars in government loans to help it reorient its business away from the United States as the federal government argues supporting the domestic steel industry is a matter of Canadian sovereignty.

Ottawa's $400 million in financial assistance will come from the Large Enterprise Tariff Loan program, a $10-billion tariff relief fund set up in March. The Ontario government will also provide $100 million to the Sault Ste. Marie, Ont.-based company.

The loans are to help Algoma Steel continue operations, limit disruption to its workforce and move to a business model that isn’t as reliant on the United States.

Patty Hajdu, minister for jobs and the federal government's northern Ontario development agency, said in an interview

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