Nov 17 2005
BlueScope Steel welcomes the announcement by the NSW Government today that it has granted planning approval for two important potential investments, the Blast Furnace Reline Project and the Cold Mill Upgrade Project, under consideration by the Company for its Port Kembla Steelworks. Obtaining this support from the NSW Government is an important milestone along the path towards the Company eventually making decisions about these investments.
In the Company's annual results announcement, reference was made to a possible A$300 million Blast Furnace reline project at Port Kembla's Steelworks.
Both the Blast Furnace Reline Project and the Cold Mill Upgrade Project must overcome stringent hurdles before the Company can commit to any investment. Ongoing work to assess these projects against our investment criteria is being undertaken including final scope, cost and timing of the projects.
"This is an important step in the approval process and BlueScope Steel appreciates the NSW Government's endorsement of these projects. We will need to look to the NSW Government for additional assurances on a range of important matters affecting the viability of investments of this sort at the Steelworks before we can finalise any investment decisions. It will be some time before the Company can make a decision as there are a number of hurdles still to be overcome. Today's announcement by the Government of NSW gives us increased confidence that we will be able to reach a satisfactory resolution of these additional matters," said Noel Cornish, President Australian and New Zealand Industrial Markets.