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| Australian OneSteel Targets FY 2010 Iron Ore Sale For 6 Mt/a |
| = Peter Smedley, chairman presents at November 17 AGM = |
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At the Annual General Meeting (AGM) held on November 17 by Australian OneSteel Limited, Peter Smedley, chairman of the company said the 2008 financial year was marked by a number of significant achievements for the company including completion of the company's merger of Smorgon Steel and the conversion of the Whyalla steelworks to magnetite ore feed under Project Magnet. Through the Project Magnet the company have been commercializing OneSteel's magnetite ore reserves for producing steel at the Whyalla steelworks, and selling hematite ore to global markets, mainly China. After five years and investments of approximately $400 million, the company's efforts on the Project Magnet have resulted in significant increases in iron ore available for export and steelmaking at the Whyalla steelworks. In February this year, the company announced that work was underway to further increase iron ore sales above 4 million tonnes per annum (Mt/a) and to identify and prove up increased iron ore reserves, under Project Magnet phase 2. -- The first stream of this new work is aimed at lifting sales of iron ore through improving operational and supply chain capability, including the review of operations from mining to barging. OneSteel's efforts to date are expected to increase iron ore sales to 6 Mt/a from the start of the 2010 financial year. -- The second stream of work is a two-year program and includes updating OneSteel's mine plans, mine extension drilling and exploration work to increase hematite ore reserves to support increased sales levels. <OneSteel's Operation Overview for Financial Year 2008> -- First half margins and results impacted by significant overhang of imports -- Dramatic increase in input costs and steel prices in second half -- Integrated business model performing well in volatile domestic and international market: a. Downstream businesses - strong focus on price increases to recover costs b. Self-sufficient in iron ore and partially sufficient in scrap metal c. Recycling business provides partial hedge in period of dramatic change -- Cash adversely effected by increase in working capital due to higher input costs and prices -- Sales margin increased from 7.9% to 8.2% -- At or near record steel production at Sydney and Laverton electric arc furnaces Total raw steel production 2,559,422 tonnes -- Iron ore shipments of 4.4 Mt and 0.5 Mt of ore by-products -- Recycled metal sales of 1,865,141 tonnes |
| last modified : Tue 25 Nov, 2008 [10:52] |
