21 February 2006
This afternoon I would like to review the outcomes and events of the 2006 financial year. I will also provide you with some commentary on what lies ahead.
The 2006/07 financial year represented a watershed period in the development of OneSteel. The sixth record profit result was complemented by substantial progress on OneSteel’s two major growth initiatives that further transform OneSteel into a stronger and more sustainable business. Entering the 2007/08 financial year, OneSteel will be a much larger and more diversified company with a number of unique characteristics that will help the business to harness further growth opportunities and better equip the business for future competitive challenges.
The principal activities of the OneSteel Group are mining, steel manufacture, and steel and metal products distribution. Further details are set out on pages 1 to 33 of the Annual Review.
OneSteel is a uniquely integrated portfolio of complementary businesses, which leverages its vlaue chain to make our customers more competitive and deliver reliable and sustainable returns on shareholders.
The 2006 Annual Review is the second in a series of “Taking a Long View”. OneSteel has continued with its record of consecutive profit improvements and making invest ments which will underpin the company’s ability to generate sustainable returns over the long term.
The principal activities of the OneSteel Group are mining, steel manufacture, and steel and metal products distribution. Further details are set out on pages 4 to 33 of the Annual Review. There were no significant changes in the nature of the principal activities of the OneSteel Group during the year under review.
Welcome to our sixth Environmental and Social Responsibility Report. This report aims to highlight the numerous challenges and successes of the 18-month period from January 2011 to the end of June 2012 in terms of social, environmental and business outcomes. It is part of increasing our transparency and ensuring our key stakeholders – particularly the local community – can keep track of the progress we are making each year.
The launch of this report follows our change of company name to Arrium to reflect we are now a broader mining and materials company. At the local level, this has seen our Mining business become known as Arrium Mining, while the Steelworks has retained its OneSteel Whyalla Steelworks brand.
Please note: this is a large file so please allow up to several minutes for it to download. Should you experience any difficulties downloading the report, please contact Media and Communications Manager Sean Kelly at email@example.com
Most readers will be aware that the company changed its name from OneSteel to Arrium effective 2 July this year, following overwhelming support from shareholders at an Extraordinary General Meeting held in May. The change of name reflects that the company is no longer a domestically focused steel manufacturer and distributor, but an international mining and materials company with three key businesses: Arrium Mining, Arrium Mining Consumables and OneSteel Steel & Recycling.
While the year has seen significant change for the company, sustainability continues to be integral to our thinking and the way we do business. Further, our two core values of “safety” and “customer” remain at the forefront of everything we do.
Arrium Limited (previously OneSteel Limited), is an international diversified mining and materials company with three key businesses: Arrium Mining, Arrium Mining Consumables and OneSteel Steel & Recycling.
On 2 July 2012, the company changed from OneSteel Limited to Arrium Limited following approval by shareholders at an Extraordinary General Meeting held on 8 May 2012. The change of name reflects the company's transformation from a domestic manufacturer of long steel products and distributor of steel products throughout Australia and New Zealand, to what it is today, an international diversified mining and materials company.
This is OneSteel’s second Sustainability Report following its transition to a more comprehensive, standalone report last year to provide stakeholders with a greater level of information on the company’s approach to sustainability. The report relates to activities and outcomes for the 2011 financial year and incorporates the Global Reporting Initiative framework and principles, and focuses on the key areas of Safety and People; Customer and Market; Environment; Community; and Economics.
The OneSteel Group is a diverse portfolio of international and domestic mining, recycling, mining consumables, manufacturing and distribution businesses. OneSteel is an exporter of iron ore and scrap metal and is the largest manufacturer and supplier of grinding media to the global resources sector. OneSteel also manufactures and supplies a range of mining consumables products, including rail wheels and wire ropes, to the resources sector.
OneSteel has a significant presence in Australian steel as an integrated manufacturer of steel and finished steel products. OneSteel is Australia’s premier manufacturer of steel long products and is a leading metals distribution company in Australia and New Zealand. The company manufactures and distributes a wide range of steel products including structurals, rail, rod, bar, wire and pipe and tube products, and distributes sheet and coil, piping systems, plate and aluminium products.
OneSteel Limited is a fully integrated, global manufacturer and distributor of steel and finished steel products. the company is self sufficient in iron ore and has the ability to be sel sufficient in scrap metal. OneSteel is Australia's Premier manufacturer of steel long products and a leading metals distribution company in Australia and New Zealand. OneSteel also makes external sales of hematite iron ore and scrap metal.
Steel is a fundamental building block of modern society, a key material in the infrastructure we depend on in our daily lives. The versatility of steel as a material delivers an ability for steel products to be transformed repeatedly after use in a variety of applications.
OneSteel responded quickly to the sudden downturn in market conditions during the 2009 financial year and introduced a number of initiatives focussed on both the balance sheet and business operations to strengthen the company’s position
OneSteel believes the applications for steel are limitless and we are transforming your company into a stronger, more diversified and sustainable business able to take advantage of opportunities and compete in a rapidly changing global environment.
• March 2013 quarter shipments of 1.97Mt (dmt) up 0.15Mt on prior quarter (includes 0.50Mt of Southern Iron sales)
• Year to date sales 5.39Mt (dmt), up 23% on prior corresponding period
• Average realised price ~US$114/t FOB (dmt), up US$13/t on prior quarter
• Average cost loaded on ship ~A$ 42/t for Middleback Ranges (wmt, excluding royalties and depreciation), down $1/t compared to previous quarter
• Record quarterly ore mined of 3.14Mt (wmt). Supports expected sales ramp up in Q4 13
• Achieved planned major milestones for expansion o The CSL Whyalla (new self-powered transshipment vessel) commissioned, operational and loading from the existing and new harbours
o 3 full capes of Southern Iron ores loaded in the quarter
o 2nd export shed completed in March
o FY13 sales estimated at 8.2 to 8.4Mt – consistent with previous guidance
o Sales run rate to lift from 11Mtpa to 12Mtpa in July/August
• December 2012 quarter shipments of 1.82Mt (dmt) up 0.21Mt on prior quarter including 0.13Mt of Southern Iron sales
• Average realised price for the quarter of ~US$101/t FOB (dmt), up US$18/t on the prior quarter
• Middleback Ranges average cost loaded on ship ~A$43/t (wmt, excluding royalties and depreciation), up $2/t from last quarter reflecting costs associated with the transition to the new mining contractor, BGC Contracting
• Achieved quarterly record ore beneficiation output exceeding 0.5Mt
• Record rail & transhipping rate from original Mine/Port for the half year
• The transition to BGC contractors at South Middleback Ranges was completed successfully and with no adverse impact on sales
• Achieved planned major milestones for expansion
• Commenced sales of Southern Iron ore in October
• Currently commissioning and ramping up supply chain, including rail and transshipping
• Remaining construction activities for Port progressing well, with expansion on time and budget for sales to be fully ramped up by July/August 2013
• Announced increase in expected iron ore sales and Whyalla Port capacity
• Total sales run rate lifted from 11Mtpa to 12Mtpa (post ramp up)
• Whyalla Port capacity lifted from 12Mtpa to 13Mtpa.
This is the revised biodiversity offset strategy for project related habitat disturbance at the Peculiar Knob Iron Ore Mining Project. This project is designed to create an offsite net benefit for the Thick-billed Grasswren at the Nature Foundations Witchelina Reserve. The biodiversity offset strategy consists of two aspects, firstly on ground reduction of predation impacts on the Thick-billed Grasswren due to feral cats and foxes; reduce grazing pressure impacts on Thick-billed Grasswren habitat due to feral goats; and Increase the area and quality of Thick-billed Grasswren Chenopod Shrublands habitat. The second aspect is a research component, designed to improve knowledge of the biology, distribution and environmental preferences of the Thick-billed Grasswren in Arid South Australia. This program will run for a period of four years in partnership with the Nature Foundation and Flinders University.
An overview presentation of the progress of the mining business towards increasing production from ~6Mtpa to ~12Mtpa and the doubling of port capacity at Whyalla from 6Mtpa to 13Mtpa. The presentation outlines the process that has been undertaken to bring Arrium Minings Southern Iron Assets online and the delivery of Iron Ore from this mine to customers in Asia.
• September 2012 quarter shipments of 1.61mt (dmt) in line with expectations and ahead of the quarterly average for FY12 of 1.57mt
• Average Fe grade for the quarter 59.8%
• Average realised price for the quarter of ~US$83/t FOB (dmt), down US$26/t on the prior quarter in line with market price reductions
• Average cost loaded on ship (wmt, excluding royalties and depreciation) for the Middleback Ranges operation of ~A$ 41/t, unchanged from the last quarter
• Southern Iron mining progressing well with 581kt of ore mined at Peculiar Knob during the quarter
- Supply chain infrastructure progressing to plan with haul road complete and commissioning of crusher commenced
- First ores sold via rail to Darwin in October of 17k dmt
• Whyalla Port expansion on track for sales through Whyalla in December 2012 quarter
- Rail, tip pocket, conveyors and first shed construction is running to schedule with connection of services complete
- Contracts in place for the remainder of construction phases
• Expected capacity of Whyalla Port following expansion revised up from 12Mtpa to 13Mtpa
• Revised up total sales expectations (from Southern Iron and Middleback Ranges) to be at run rate of 11mtpa by mid 2013 and then to increase to ~12Mtpa by July/August 2013 once larger ship loader is installed.
Mining and materials group Arrium Limited (ASX:ARI) today released a mining presentation to be delivered to analysts attending its Mining site tour in South Australian later today. The tour forms part of the company’s scheduled investor relations program for the year.
As well as providing an update on the investment to deliver a step change in our Mining business through the Southern Iron Development and the Whyalla Port capacity expansion, the presentation highlights progress on key initiatives discussed at our full year results in August.
The attached report is Arrium Mining’s first quarterly production report. Arrium Mining is a division of Arrium Limited (ASX:ARI), a mining and materials group consisting of Mining, Mining Consumables and Steel and Recycling businesses.
Given the growth in Arrium’s Mining business, the company has decided to prepare quarterly production reports to provide additional information regarding Arrium Mining’s activities related to the external sale of iron ore. Arrium expects to release its December and June quarterly production reports at the time of its half year and full year results announcements respectively, its September quarterly production report at the time of its Annual General Meeting, and the March quarterly production report in May.
• Continued strong earnings growth from Mining Consumables – EBITDA $100 million
• Solid cash outcome
• Strong earnings from Mining despite ~$75-85 millionv NPAT impact from significantly lower iron ore prices compared to 1H12
• Steel businesses maintained improved performance from 2H12 despite deterioration ininternational steel markets
• Raised $72 million from divestments
• Net debt reduced after capital expenditure of $259 million (includes $201 million Mining expenditure)
Detailed financials results for the first half of the financial year in 2013.
Mining and materials group, Arrium Limited (ASX:ARI) announced today that underlying net profit after tax (NPAT) for the year ended 30 June 2012 was $195 million compared to $235 million for the prior financial year, in line with guidance provided by the company in July of more than $190 million. Statutory NPAT for the year was $58 million compared to $230 million for the prior financial year and includes a write down of property, plant and equipment and intangible assets of $125 million, which includes the LiteSteelTM Technologies impairment charge from the first half of the financial year.
Mining and materials group, OneSteel Limited (ASX:OST) announced today a statutory net loss after tax of $74 million for the six months ended 31 December 2011, compared to the statutory net profit after tax for the prior corresponding half of $116 million. Included in the statutory result is an impairment charge of $130 million related to the write down of the assets of the LiteSteelTM Technologies businesses in the US and Australia, as announced in December. Underlying net profit after tax from continuing operations for the first
(ASX:OST) OneSteel Limited announced today a statutory net profit after tax of $230 million for the year ended 30 June 2011, a decrease of 11% compared to the statutory net profit after tax for the prior year of $258 million.
(ASX:OST) OneSteel Limited announced today a statutory net profit after tax of $116 million for the six months ended 31 December 2010. The interim financial result represents a slight decrease on the $117 million statutory net profit after tax for the six months ended 31 December 2009.
Items of business
1.Receive and consider the Financial Report, Directors’ Report, Notes to the Financial Statements and Auditor’s Report for the year ended 30 June 2012;
2. Adopt the Remuneration Report for the year ended 30 June 2012;
3. Re-election of Messrs Davis and Smorgon as Directors; and
4. Renew provisions in the Constitution relating to proportional takeovers which are required to be renewed by members every three years.
An operational overview of Arrium's OneSteel Steel & Recycling business and its performance over the FY12 year.
These presentations contain certain forward-looking statements with respect to the financial condition, results of operations and business of OneSteel and certain plans and objectives of the management of OneSteel. Forward-looking statements can generally be identified by the use of words such as ‘project’, ‘foresee’, ‘plan’, ‘expect’, ‘aim’, ‘intend’, ‘anticipate’, ‘believe’, ‘estimate’, ‘may’, ‘should’, ‘will’ or similar expressions. All such forward looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies and other factors, many of which are outside the control of OneSteel, which may cause the actual results or performance of OneSteel to be materially different from any future results or performance expressed or implied by such forward looking statements. Such forward-looking statements speak only as of the date of this presentation.
Investor presentation - Mining consumables acquisition 15 November 2010
Building a sustainable future Sustainability REPORT 2010
OneSteel Limited OneSteel Grinding Systems (OGS) – Martin Meulendyke, General Manager Global Grinding Media
OneSteel Grinding Systems (OGS) – Martin Meulendyke, General Manager Global Grinding Media