boulder steel limited - asx2009/11/27 · boulder steel limited a.c.n 009 074 588 level 2, 16...
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BOULDER STEEL LIMITEDA.C.N 009 074 588
Level 2, 16 Byfield Street, MACQUARIE PARK NSW 2113Tel: +61 2 9413 1811 Fax: +61 2 9419 2818PO Box 1293 Macquarie Centre, NORTH RYDE NSW 2113, AUSTRALIAwww.bouldersteel.com.au Email: [email protected]
27 November 2009
Manager of Company AnnouncementsASX LimitedLevel 6, 20 Bridge StreetSYDNEY NSW 2000
2009 Annual General Meeting (“AGM”) Chairmanʼs Speech & Presentation
Please find attached a copy of the 2009 AGM Chairmanʼs Speech and a copy of the presentation which will be presented to members and their representatives at the AGM.
For Immediate Release
Kind regards
Daniel Owen
Company Secretary
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Boulder Steel Limited 2009 AGM
Chairman’s Review
2009 was a very challenging year given the external environment all companies operated in. The Global Financial Crisis and its ongoing impact on the global capital markets has been profound. Boulder also had its challenges where our shareholders voiced their opinion to reaffirm the clear vision and objectives of Boulder management and enabled a strengthening of the Board and the operational team.
The Board and management recognised that Boulder requires a strong partner with a similar vision to achieve its goals and to increase shareholder value. The partnership of steel with Arabia for Business Strategies (ABS) was established. This strategic partnership between Boulder and ABS has the firm objective of becoming a world class steel producer based upon the common clear vision of both partners.
Since entering into a memorandum of understanding in May this year Boulder and ABS have progressed all facets of their partnership.
• Boulder has engaged in discussions and advanced negotiations on a number of fronts to secure raw materials in Australia.
• The Gladstone Steel Project has advanced significantly and received the endorsement of the Queensland Premier, Ms. Anna Bligh, who stated: “This proposed Boulder Steel project heralds a new era for the region”. Mr Johnson will provide an insightful update on the project in his presentation.
• A key rail and heavy beam plant to be constructed in the Kingdom of Saudi Arabia has already been announced and ABS Boulder presented a paper at the SBB Steel Market Middle East conference in Dubai in September this year. Further downstream processing facilities will also be located near the market and provide vital resources needed for rolling and finishing operations.
• Mr Jawad Zulqadar, managing director of ABS, visited Boulder to meet potential partners and review progress. Mr Zulqadar made a clear statement about the intention of ABS working in partnership with Boulder:
“The ABS Boulder partnership does not intend to acquire raw material assets in Australia for the sole purpose of exporting these commodities. ABS, in partnership with Boulder Steel, strongly supports the concept of adding value to these raw materials in the proposed Gladstone steel plant, creating new employment opportunities for Australians. ABS wants to be seen as a true joint venture partner, by not just contributing its financing capabilities, but also by ensuring off-take for semi-finished steel products from Gladstone and by assisting with development of infrastructure, if necessary.”
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• Negotiations between Boulder on the structure and nature of the strategic partnership are being actively advanced .
The strategic partnership with ABS provides a significant opportunity for Boulder to develop strong and well founded shareholder value.
Boulder is very cognisant of the need to address climate change and thereby undertakes its projects in an ecologically aware manner. Boulder has incorporated these needs into its planning and design process and aims to meet and exceed strict environmental standards, paving the way for a low carbon future with cleaner products and sustainable processes.
Finally we would like to thank Mr Joachim von Schnakenburg, who retired as a Director during the year, for his valuable and considerable input to Boulder during its evolution to where we are today.
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Partnership of Steel Arabia for Business Strategy LLC + Boulder Steel Limited
GLADSTONE STEEL PLANT PROJECT
Annual General Meeting Presentation
27 November 2009
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Saudi Arabian Company owned by a member of the Royal Family of the Kingdom of Saudi Arabia.
ABS is one of several related companies
Other interests include:
PropertyPower StationsWind PowerPetrochemicals
Who is Arabia for Business Strategies
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Who is Boulder Steel Ltd
-listed company with its Head Office in North Ryde, Sydney, New South Wales, Australia
50% ownership of Euro Forming ServicesProduction of Auto parts and aerospace parts
Proponents of the Gladstone Steel Plant Project
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Euro Forming Services
Made to Order Components for the Automotive Elite andAircraft Industries
Quality, Light Weight, High Strength
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Background
Kingdom of SAUDI ARABIA
Gladstone, QLD AUSTRALIA
MarketsSteel Processing and Finishing
Raw Materials
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Raw Materials
Iron making
Steel making
Sales & Marketing
Finished Product
Finishing Plant
Hot Rolling
Gladstone
Al Jubail Rail & Beam Mill
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Complementary Supply Chain
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Controlling the Supply Chain
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Australia
Mining and Steelmaking in AustraliaAvailability of natural resources and modern technology in Australia.
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Gladstone Australia Advantages
Raw MaterialsIron ore, coal and limestone
are readily available
Road, rail, deep water port, heavy industry are established
Utilities Power plant, water, gas, oxygenavailable on site
By-products Off-gas and slag off-takers close byLess pollution No waste management
Government Strong effective support; no restriction on monetary inflows or repatriation
Infrastructure
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Designated Plant Site Layout
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Railway
Substation
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Location of Gladstone Steel Plant Project
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Mt Larcom
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Substation
Plant Site
Site Looking North West
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Plant Site
Very Flat Plant Site
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Very Flat Plant Site
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Plant Site Looking South
Substation
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To Port
Plant Site
Plant Site is Close to the Port
Rail and Road to Port
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Designated Wharf location for ABS Boulder
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Introducing the Gladstone Steel Plant Project
What is the Gladstone Steel Plant Project?
The Gladstone steel project will use blast furnace / basic oxygen furnace technology to produce high qualitysteel billets, blooms and slabs for downstream finishing in rolling mills in the Middle East.
What will be produced?
2.5 million tonnes per annum (tpa) of billets, blooms and slabs will be produced as the first stage of the project,followed by a second stage expansion to 5mtpa. Slags produced in the process will be sold locally to thecement, construction and road building industries. Waste gases from the process will be sent to a cogenerationpower station for conversion to electric power.
Several companies are studying the feasibility of establishing a gas fired power station adjacent to the site.
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4 Batteries of 64 Ovens
13m Long x 3m Wide x 3.5m High
Non recovery type with coal stamp charged into oven
Coke Ovens (Stage 1)
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500TPH continuous strand type
60m Long x 6m Wide x 700mm Deep
30m diameter cooler and screening station
Sinter Plant (Stage 1)
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1 x 3,200 m3 inner volume furnace24 x Tuyeres with oxygen enrichment3 x tap holes3 x natural gas enriched blast furnace fired stoves at 1250oC.2 x 20MW cold blast blowers1 x 60TPH Pulverised Coal Injection (PCI) system1 x 10MW Top gas energy Recovery Turbine (TRT)
Bustle main & tuyeresStoves
Blast Furnace (Stage 1)
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3 x 150t vessels1 x slag rake8 x 40t scrap chutes2 x 250t charge cranes for hot metal1 x 80t charge crane for scrap chute2 x 250t steel ladle cranes4 x ladle cars2 x oxygen lance systems
15 x steel ladlesFurnace
Steel in steel ladle being transferred to
refining
Ladle CarHot Metal Charging
Charging Crane and Scrap Chute
Basic Oxygen Furnace (Stage 1)
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2 x 150t Ladle Treatment station including alloy system and ladle reheating
1 x 150t RH Vacuum Degasser
3 x 250t ladle cars
Vacuum Degasser
Ladle Metallurgy Furnace
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Basic Oxygen Furnace Metal Refining (Stage 1)
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1 x 150-350mm combi billet caster 900,000 tpa capacity1 x Square-Billet/Bloom Caster 1,200,000 tpa capacity2 x 250t ladle cranes2 x twin 250t ladle turrets
Continuous Casters (Stage 1)
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It is proposed to enter an arrangement with a power generator to take thefollowing items:
The steam from the Coke Ovens waste heat boilerThe Blast Furnace off gasThe electricity from the Blast Furnace Top Recovery TurbineThe Basic Oxygen Furnace off gas
The items supplied to Co-Gen Plant will produce approx. 1500GWh ofelectricity each year
Co-Gen Power Station
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ITEM TONNESMTPA
ROUTE TO PLANT
LOADED TRIPS PER HOUR
IRON ORE 4.027Truck from F.L. viatransport corridor 3.2
COAL 1.822Train to rail loop then conveyor to stockpile Nil
LIMESTONE 0.887Truck from quarry
2.6
SCRAP STEEL 0.050Truck
0.6
ALLOYS 0.031Containers from Auckland Point 0.4
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Key Plant Inputs (Stage 1)
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ITEM TONNESMTPA
TRANSPORTROUTE
LOADED TRIPS PER HOUR
BILLETS & BLOOMS2.500
Transport corridor to FL 2.4
BLAST FURNACE GRANULATED SLAG 0.500 Transport corridor
to FL0.5
BLAST FURNACE PROCESSED SLAG 0.223 District roads 2.3 *
B.O.F. PROCESSED SLAG 0.207 District roads 2.1 *
* May replace material from quarries environmental advantage
Key Plant Outputs (Stage 1)
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Raw Materials / Product Transport (Current Plan)
Iron Ore: From Landing by truck on a dedicatedhaul road section of the transport corridor
Coal: From rail loop near to the plant then via conveyor to the stockpile
Limestone: By truck from local quarry or quarries
Alloys: From Auckland Pt, Gladstone in containers, by truck
Slag: By truck via the transport corridor to Landing for the Australiancement industry
Finished Product: By truck to Landing on the dedicated haul roadsection of the transport corridor for loading to export ships
Gladstone Steel Plant Project
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Construction of the facility requires 900 employees with a peak at 1080.
More than 700 jobs during Stage 1 of operations and a further 550 jobs for Stage 2. Thisexcludes down day maintenance employees.
About 1800 full-time equivalent jobs created throughout other sectors of the regionaleconomy for the operations of Stage 1. A similar number created through the developmentof Stage 2.
Enhancements of the skills base of the local/ regional labour pool. Discussions progressingwith CQU and Gladstone TAFE regarding possible new courses.
Development of electricity for the State grid through the use ofwaste heat and gases.
Opportunities to form partnerships with local suppliers.
A significant new industry for Queensland.
Adds more value to materials normally only exported in raw form, thereby generatingadditional export revenue of over USD1 Billion in each stage.
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Key Project Benefits
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Granted Significant Project Status on 3 April 2009Federal Government declared project on 23 June 09
Study and approvalsDraft Terms of Reference (TOR) released by DIP late Aug 2009Public comment for TOR closed 12 October 2009Environmental Impact Statement Planning to be lodged 1st Quarter 2010EIS released for public comment planned for 2nd Quarter 2010Review and approvals of EIS
ConstructionEarly works fourth quarter of 2010First produced first quarter of 2013.
Project Milestones (current plan)
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November Update
Plant Equipment Bids due end November early December at least 2 bids expected.
Haul Road Route Optimisation Study progressing to plan.
Ore and Steel Products Shipping Plan Draft report complete
Ore and Steel Products Shipping Berths and Lay Down Areas report complete
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Thank You!
Any Questions?
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