1010
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There's alternative processes, and if you avoid burning oil and coal for fuel you can basically do all that with the amount of oil that's in easy reach instead of using tar sands or drilling into even more difficult to reach places.
the problem with tar sands is a fundamental energy conversion issue. It's really hard to refine because you don't get nearly as much energy out as you put in, compared to something like fracking.
It may become reasonable in the future with really cheap renewable energy and higher oil prices for example, but as of right now, it's economically unviable.
You have to be careful when talking about steel because coal is both an ingredient (steel is iron + carbon) and used for heating afaik. You can take coal out of the heating step (confusingly called steel making) but not out of the ingredient step, unless you want to find a different carbon source.
There's (admittedly comparatively expensive) alternative processes, and even if you stick to the old process and just stop using coal for electricity generation you'd cut coal use by 75%.
Not to mention, the carbon that stays in the steel doesn't actually go into the atmosphere, so there's less CO2 emissions for that specific use if you can substitute the fuel used for heating.
That's why I said met coal for steel.
you're probably talking about direct reduced iron and it's really a problem that can be dealt with easily, just chuck a piece of coke when it's molten for the second time in electric arc furnace (and maybe electrodes introduce enough carbon). substituting coke with hydrogen works also on "ingredient step" if you mean by that fuel needed to reduce iron ore to iron
maybe there's a way to make electrowinning iron economical, and it'd be pretty green too, but i don't know if it is workable
e: you can also avoid need for met coal if you use methane or syngas for direct reduced iron process