Arrium agreement the right step forward

THE Australian Government has welcomed today’s announcement that Arrium Mining and Materials has secured short-term finance and announced a plan to enable it to recapitalise the mining and materials business and implement a strategic plan.

This recapitalisation plan will allow the company to retain its profitable mining consumables division and provide additional funds for restructuring its Whyalla-based steel and mining activities.

Minister for Industry, Innovation and Science Christopher Pyne acknowledged the importance of this announcement to the people of Whyalla and the future of South Australia.

“Arrium is the major employer in Whyalla and a large employer across South Australia, with over 1700 workers across the state as at December 2015,”Mr Pyne said.

“This announcement demonstrates a strong commitment by Arrium to its ongoing viability, following its recent strategic review. However, this does not fully resolve the issues that Arrium is facing.

“The company still has work to do to finalise its recapitalisation and then ensure the Whyalla steelworks maintains its competitiveness.”

Arrium will continue to work to make an additional $60 million in savings at  the  Whyalla steelworks  to reach a cash break-even point. 

“The Government has implemented significant policy reforms to strengthen the competitiveness of Australia’s steel industry, including repealing the carbon tax and providing a 100 per cent exemption from the Renewable Energy Target,” Mr Pyne said.

To further assist the steel industry, Minister Pyne has recently requested the Anti‑Dumping Commission undertake an economic analysis of Asian steel and aluminium markets and the impact on the global and Australian markets.

“As both a South Australian and Minister for Industry, Innovation and Science, I am committed to working with Australian Steel makers in pursuing initiatives that support a competitive local industry.

www.industry.gov.au

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