STEEL INDUSTRY AND TRADE – AUSTRALIA

Whyalla rescue plan launched two months ago

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Original article by Simon Evans
The Australian Financial Review – Page: 19 : 25-Feb-25

Bruce Carter has been the chairman of the South Australian government’s Steel Task Force since its inception in 2015. It was established over concerns regarding the financial stability and future of the Whyalla steelworks under the then-ownership of Arrium, which went broke in 2016, with British industrialist Sanjeev Gupta emerging as the new owner of the steelworks in mid-2017. With the state government becoming increasingly fed up with Gupta’s unpaid bills and the damage they were doing to the town of Whyalla, it has been revealed that Carter phoned KordaMentha in late 2024 about the possibility of placing the steelworks into administration; the government ended up appointing KordaMentha as administrator of the Whyalla steelworks and associated iron ore mines on 19 February.

CORPORATES
KORDA MENTHA AND COLLEAGUES PTY LTD, ARRIUM LIMITED

Gupta to fight OneSteel wind-up

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Original article by Nick Evans, Perry Williams
The Australian – Page: 13 & 16 : 7-Apr-21

The future of the Whyalla steelworks in South Australia is in doubt after Citibank filed a ‘winding-up in insolvency’ application for the plant’s operator, OneSteel Manufacturing. The application also includes Tahmoor Coal, which operates an associated coal mine in New South Wales. McGrathNicol will become liquidator of the two companies if the Supreme Court of NSW approves the application. British businessman Sanjeev Gupta is trying to secure $500m in new funding for the Whyalla steelworks following the collapse of Greensill Capital, which is the major creditor of his GFG Alliance.

CORPORATES
ONESTEEL MANUFACTURING, TAHMOOR COAL PTY LTD, CITIBANK (SWITZERLAND) AG, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, SUPREME COURT OF NEW SOUTH WALES, GREENSILL CAPITAL (UK) LIMITED, GFG ALLIANCE

No liquidity crisis at Arrium: directors

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Original article by Max Mason
The Australian Financial Review – Page: 22 : 5-Mar-21

Marcus Pesman has told the New South Wales Supreme Court that collapsed steelmaker Arrium was not in a liquidity crisis. He is representing eight former members of the Arrium board in a lawsuit brought by liquidator KordaMentha for alleged insolvent trading. Pesman is also representing former Arrium CFO Robert Bakewell in the same action, along with two other actions brought by lenders to which the eight former board members are not defendants. Pesman told the court that the lenders had sufficient information available to make their own assessment of Arrium’s financial state at the time, while he noted that the Arrium board met 21 times between December 2015 and April 2016, indicating that the directors took their responsibilities seriously.

CORPORATES
ARRIUM LIMITED, KORDA MENTHA AND COLLEAGUES PTY LTD, SUPREME COURT OF NEW SOUTH WALES

Rio Tinto says China shows growing iron ore appetite

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 22 : 8-Apr-20

The head of Rio Tinto’s iron ore division, Chris Salisbury, notes that Chinese demand for the steel input remained strong while the nation was contending with the coronavirus earlier in 2020. He adds that China’s steel stockpiles have started to fall and Rio Tinto’s order books are full. Chinese steel mills buy more than 70 per cent of Rio Tinto’s iron ore, and China accounted for 51.3 per cent of the resources group’s revenue in 2019. Australia’s iron ore exports are forecast to top $101bn in 2019-20.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Former Arrium directors face recovery action

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Original article by Simon Evans
The Australian Financial Review – Page: 16 : 22-Jul-19

Insolvency firm KordaMentha has launched legal action in the New South Wales Supreme Court in an attempt to pursue former directors of failed steel firm Arrium for monies owed to its creditors. Arrium was placed in administration in April 2016 owing $2.8 billion to banks and noteholders. KordaMentha then operated the business as administrators until it was purchased by British billionaire Sanjeev Gupta for around $700 million in August 2017.

CORPORATES
KORDA MENTHA AND COLLEAGUES PTY LTD, SUPREME COURT OF NEW SOUTH WALES, ARRIUM LIMITED

BHP and BlueScope to sink local crews after 17 years

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Original article by Paul Garvey
The Australian – Page: 17 : 16-Jan-19

The Maritime Union of Australia has criticised BHP and BlueScope Steel for opting against renewing contracts to charter two iron ore bulk carriers. The vessels are used to ship iron ore from BHP’s mines in the Pilbara to BlueScope’s Port Kembla steelworks; a BHP spokesman says the contracts are a legacy of BlueScope’s spin-off in 2002. The ships were the last two iron ore vessels to be manned by Australian crews. The MUA says the crews will be replaced by low-paid foreign workers.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BLUESCOPE STEEL LIMITED – ASX BSL, MARITIME UNION OF AUSTRALIA, TEEKAY SHIPPING CORPORATION

Gupta buys NSW coal mine from Glencore

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Original article by James Thomson
The Australian Financial Review – Page: 14 : 3-Jan-18

Sanjeev Gupta’s GFG Alliance has acquired Glencore’s Tahmoor coal mine in New South Wales for an undisclosed sum, although the mine’s value is reckoned to be around $A500 million. Coal from the mine will support Gupta’s steelmaking operations in South Australia, with Gupta having acquired the assets of failed steelmaker Arrium, including its Whyalla steelworks, in August 2017. Tahmoor produces around two million tonnes of coal per annum, most of which is used for steelmaking.

CORPORATES
GFG ALLIANCE, GLENCORE AUSTRALIA PTY LTD, YANCOAL AUSTRALIA LIMITED – ASX YAL, RIO TINTO LIMITED – ASX RIO, COAL AND ALLIED INDUSTRIES LIMITED, LIBERTY HOUSE GROUP, SIMEC, ZEN ENERGY PTY LTD

BlueScope dives as chief departs

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Original article by Matt Chambers
The Australian – Page: 17 & 20 : 22-Aug-17

BlueScope Steel has reported a sharp rise in net profit for 2016-17, to $A715.9m. However, the steel-maker has advised that EBIT for the first half of 2017-18 will fall from $A527m previously to $A422m, due to factors such as the strong Australian dollar and the impact of rising scrap metal prices in the US on its North Star subsidiary. BlueScope has also revealed that Mark Vassella will succeed CEO Paul O’Malley at the start of 2018, and that the company is the subject of a cartel investigation. BlueScope shares fell $A3.08 to $A11.03 on 21 August.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL, NORTH STAR STEEL, CARGILL INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CITIGROUP PTY LTD

Bluescope wins labour dispute

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Original article by Anna Patty
The Age – Page: 23 : 10-Aug-17

The Fair Work Commission has ruled that it was appropriate for Bluescope Steel to hire contract labour to cope with a seasonal rise in demand at its steel mill in Victoria, rather than employing permanent employees for just eight weeks. The steel-maker had contended that its enterprise agreement allowed it to hire temporary workers without obtaining the consent of unions, an argument which had been rejected by the Australian Workers’ Union. BlueScope also argued that overtime restrictions prevented it from using existing staff, which the AWU also disputed.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

Fears a Trump tariff will spike dumping

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Original article by Andrew Tillett
The Australian Financial Review – Page: 4 : 11-Jul-17

Australian Steel Institute CEO Tony Dixon has welcomed reports that Australian steel and aluminium will be exempt from proposed new US import tariffs. However, Dixon has raised concerns that Australia could face an influx of low-cost imported steel from countries that are barred from the US market under the new tariffs regime. The Opposition has also stressed the need to protect local industries and jobs by ensuring that anti-dumping laws are enforced.

CORPORATES
AUSTRALIAN STEEL INSTITUTE LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, BLUESCOPE STEEL LIMITED – ASX BSL