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22 nd January 2003 Port Kembla Steelworks & Springhill Port Kembla Steelworks & Springhill Analyst Site Visit Noel Cornish Chief Executive Australian & New Zealand Steel Manufacturing File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template Chief Executive Australian & New Zealand Steel Manufacturing Businesses May 2011 May 2011

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Page 1: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

22nd January 2003Port Kembla Steelworks & SpringhillPort Kembla Steelworks & SpringhillAnalyst Site VisitNoel CornishChief Executive Australian & New Zealand Steel Manufacturing

File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template

Chief Executive Australian & New Zealand Steel Manufacturing BusinessesMay 2011May 2011

Page 2: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Important Notice

THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER INVITATION OR THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION OR RECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPE STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE. RELIANCE SHOULD NOT BE PLACED AFTER SEEKING APPROPRIATE FINANCIAL ADVICE. RELIANCE SHOULD NOT BE PLACED ON INFORMATION OR OPINIONS CONTAINED IN THIS PRESENTATION AND, SUBJECT ONLY TO ANY LEGAL OBLIGATION TO DO SO, BSL DOES NOT ACCEPT ANY OBLIGATION TO CORRECT OR UPDATE THEM. THIS PRESENTATION DOES NOT TAKE INTO CONSIDERATION THE INVESTMENT OBJECTIVES FINANCIAL SITUATION OR PARTICULAR CONSIDERATION THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR PARTICULAR NEEDS OF ANY PARTICULAR INVESTOR.

TO THE FULLEST EXTENT PERMITTED BY LAW, BLUESCOPE STEEL LIMITED AND ITS AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS, ACCEPT NO RESPONSIBILITY FOR ANY INFORMATION PROVIDED IN THIS PRESENTATION INCLUDING ANY FORWARD LOOKING INFORMATION AND DISCLAIM ANY PRESENTATION, INCLUDING ANY FORWARD LOOKING INFORMATION, AND DISCLAIM ANY LIABILITY WHATSOEVER (INCLUDING FOR NEGLIGENCE) FOR ANY LOSS HOWSOEVER ARISING FROM ANY USE OF THIS PRESENTATION OR RELIANCE ON ANYTHING CONTAINED IN OR OMITTED FROM IT OR OTHERWISE ARISING IN CONNECTION WITH

1

THIS.

Page 3: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

IntroductionIntroductionIntroductionIntroduction

2

Page 4: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Current Structure - Single point of focus for Australian & New Zealand Steel Manufacturing Businesses

Managing Director

CFO (Charlie Elias)Legal (Michael Barron)

People and Organisation Performance (Ian Cummin)Paul O’Malley

and CEO

Aus/NZ Steel Manufacturing

Businesses

Australian Coated and Industrial Markets

Australian Distribution and

SolutionsAsia ChinaNorth America

Noel Cornish Paul O’Keefe Keith Mitchelhill Sanjay Dayal Bob MooreMark Vassella

Oversees all manufacturing gfacilities in Aus/NZ; responsible for driving safety, process excellence and meeting production schedule at lowest costschedule at lowest cost• PKSW• Springhill• Western Port• Western Sydney

A i Rid

3

• Acacia Ridge• Glenbrook NZ

Page 5: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Current Australian & New Zealand Steel Manufacturing Businesses

Noel CornishChief Executive

ANZSMB

Sharon WingatePersonal Assistant

ANZSMB

Aimee AllenGeneral Manager

Western Port

Oscar GregoryGeneral Manager

Iron & Slab

Gabe MeenaGeneral ManagerMills & Coating

Simon LingePresident

New Zealand Steel & Pacific Islands

Lawrence McDonaldGeneral Manager

Finance

John NowlanGeneral Manager

Eng’g, Manufacturing& Environment

Barb BridgerGeneral Manager

People & OrgPerformance

Ross MurrayGeneral Manager

Strategy

4

Page 6: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

New BlueScope Australia & New Zealand (“BANZ”) Structure – Aligned and Market Focused Australian & New Zealand Steel Businesses

Managing Director

CFO (Charlie Elias)Legal (Michael Barron)

People and Organisation Performance (Ian Cummin)Paul O’Malley

and CEO

Global Building & Construction Markets

BlueScope Australia and New Zealand Asean ChinaNorth America

Pat Finan Mark Vassella Sanjay Dayal Bob MooreKeith Mitchelhill

Single organisation serving the g g gmarkets of Australia and New Zealand, including all significant operational facilities:• PKSW• Springhill• Springhill• Western Port• Western Sydney• Acacia Ridge• Glenbrook NZ

Di t ib ti

5

• Distribution• Lysaght

Page 7: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

New BANZ Structure – Aligned and Market Focused Australian & New Zealand Steel Organisation

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Page 8: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Changes to BlueScope Australia & New Zealand Business

• The recently announced changes to the Australasian business are intended to:

Deliver an improved sales and marketing effort and better integrated customer service, with a key focus to compete against imported steel, y p g pIntegrate business support functions

This initiative will not require any changes to external reporting • This initiative will not require any changes to external reporting segments

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Page 9: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Agenda

• Safety• Safety

• Water conservation

• Community

• Markets

• Port Kembla Steelworks– Process and Production– Costs and Raw materials– Major Investments

• Coated BusinessesProcess and production– Process and production

• Summary

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Page 10: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Safety, Water Conservation, Safety, Water Conservation, Community & Markets Community & Markets

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Page 11: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Safety – ANZSMB – Illawarra

Medically Treated Injury Frequency RateLost Time Injury Frequency Rate y j y q yj y q y

2.52.5

3.020

1.8 1.8

1.41.5

2.013

9

7

10

0.7

0 1

0.8 0.9

0.30.40.5

1.07

5 5 54

64.7

3.3

0.10.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011

Fiscal years

02002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011

Fiscal years

10

Page 12: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Environment – Continued Improvement in Water Conservation

Port Kembla SteelworksWorld class water efficiency for an integrated steelworks

Springhill WorksFresh water input is >50% recycled water• World class water efficiency for an integrated steelworks

• 26,500 ML of recycled water used since Oct 2006• Recycled water is >50% of total fresh water inputs

O ti b i i ti t d f f th d ti

• Fresh water input is >50% recycled water

• Options being investigated for further reductions.

Hot Strip Mill run out table uses recycled water

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Hot Strip Mill run out table uses recycled waterFederal Government’s proposed Carbon Tax Scheme will be reviewed after this presentation

Page 13: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Community Engagement

• Policy of supporting education • Policy of supporting education, youth, arts and culture, community welfare

• Active participation in a variety of community initiatives and committeescommittees

• $500,000 in sponsorships, supporting 30+ Illawarra pp gorganisations

• $80,000 in donations towards charities, schools, sport, employees and their families

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Page 14: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Markets and Supply Chain

B ildi &

Western Port

Building & Construction

Illawarra

Distribution

DirectIllawarra

Export

DomesticDistribution & Solutions

Australia Manufacturing

Export

Distributors

Pipe & Tube

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Page 15: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Port Kembla SteelworksPort Kembla SteelworksPort Kembla SteelworksPort Kembla Steelworks

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Page 16: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Port Kembla Steelworks – Overview

f• Fully integrated plant with steel making capacity of 5.3Mtpa.

• Situated on 760 hectares and employing 3,100 permanent employees (plus 1 000 1 00 i d ) 1,000 - 1,500 contractors on any given day).

• Excellent technical and operational skills and experience.

• Focus on:- Safety - Productivity

C t Q lit- Customers - Quality- Environment - Costs- Community - Flexibility

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Page 17: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

PKSW – Overview of Steel Production Process

I OCoal

SINTERING

COKE OVEN

Iron Ore

Coke

BLAST FURNACE

Sl

Molten pig iron

Sintered ore

CONVERTER (BOS)

Slag

“Graded” Liquid

FLAT PRODUCTS

Liquid Steel REFINING STAND

Slab

CONTINUOUS CASTING

REHEAT FURNACE

Slab

Hot rolled strip mill

Cold rolled strip mill

Wide coil Narrow strip Cut lengths

ROLLING MILL

Hot Rolled Coils

Electrical coil Metal Coated coil

PlateReversing mill

Painted coil Laminated coil

Welded tube mill

Coils

16

Tubes

Page 18: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

PKSW – Production & Despatch Flow

Domestic0 0

Port Kembla SteelworksSlab Production

1H 2011 1H 2010Slab

872 8392,643 2,187

Interco521 464

Western Port (2)Inventory movements& yield losses

Export351 375

Domestic213(3) 256

DomesticExport

HRC1,448 1,112

Springhill(5) /

Hot Strip Mill Port Kembla Steelworks

Despatches (1)

1H 2011 1H 2010 Domestic495 492

Export467(4) 154

Interco768 702

Export273 210

Springhill( ) / Distribution

Asia / Nth Am(6)

1H 2011 1H 20102,494 2,081

Export58 10

Domestic83 82

Plate174 129Plate Mill

Product / DestLegend:

Notes:(1) Slab, HRC and plate. Variances of totals from sum of constituents is due to rounding.

Domestic33 37

Interco33 37

58 10

Distribution

1H 11 kt 1H 10 kt

(2) See Coated Australia Annual Capacities slide for Western Port Works capacities.(3) Domestic HRC ex Port Kembla Steelworks only; ie excludes domestic HRC despatches from Western Port when reconciling from the ASX Release, Attachment 1.(4) Export HRC ex Port Kembla Steelworks only; ie excludes export HRC despatches from Western Port when reconciling from the ASX Release, Attachment 1.(5) See Coated Australia Annual Capacities slide for Springhill Works capacities. (6) See ASX Release, Attachment 1 for detail.

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Page 19: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

PKSW – Major Investments

Commissioning Project Capex (A$m)

1996 No. 6 Blast Furnace 478

2000 5 t P j t 902000 5mtpa Project 90

2001 Coke Side Emission Control 91

2004 Sinter Plant Emission 94

2006 Hot Strip Mill Expansion 1002006 Hot Strip Mill Expansion 100

2009 No. 5 BF Reline 362

2009 Sinter Plant Upgrade Project 142

2011 Steam Asset Upgrade Project 51

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2012 Steel Injection Station 36

Page 20: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

PKSW – Major Investments

No. 5 Blast Furnace• Built in 1972, relined in 1978, 1991 and 2009; capacity approximately 2.6Mtpa of hot Built in 1972, relined in 1978, 1991 and 2009; capacity approximately 2.6Mtpa of hot

metal• Reline undertaken from 18 Jan to 19 Aug 2009• Restarted on 19 August 2009 and has operated continuously since blow-in

No. 3 Sinter Machine• Built in 1975, revamped in 2009; capacity approximately 6.6Mtpa of sinter• Refurbishment undertaken from May to June 2009• Scope of work included new strand feeder and ignition furnace longer strand wider Scope of work included new strand feeder and ignition furnace, longer strand, wider

cooler, cooler fan upgrade, electrostatic precipitators upgrade• Restarted 29 June 2009

Steam Asset Upgrade Project• Commenced April 2009, expected completion August 2011• Scope is to upgrade steam generation assets, comprising two new natural gas fired

package boilers, upgrade of boiler control systems and a new water treatment plant• Ensures a secure supply of steam (energy) for 5-10 years, deferring the steam security

scope of the Steelworks Cogeneration Project

Steel Injection Station Project• Commenced April 2010, expected completion December 2011

S i t i t ll t l i j ti f iliti l i i t i t ll d i 1980• Scope is to install new steel injection facilities, replacing equipment installed in 1980• The project will enable incremental steel production growth and increased capability for

production of special steels19

Page 21: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

PKSW – Cost Profile

Total cost A$m

Raw Materials

Desp & Freight

Conv Costs

1H FY2011FY2010FY2009FY2008FY2007FY2006

S&A

Notes:(1) Chart shows cost of despatches.(2) Conversion costs include depreciation . (3) Raw material includes iron ore, coal, scrap and alloys but not scrap purchased on behalf of OneSteel.

1H FY2011FY2010FY2009FY2008FY2007FY2006

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Page 22: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

PKSW – Consumption of Primary Raw Materials

Indicative use rateFY2008 FY2009 FY2010 1H FY11 per slab tonneVolume consumed in production (dry mt)FY2008 FY2009 FY2010 1H FY11 per slab tonne

Iron OreFines 4.0 2.9 4.0 2.3 0.97tLump 1 6 1 0 1 5 0 9 0 31t

Reflects mix shift from sinter plant

upgrade Lump 1.6 1.0 1.5 0.9 0.31tPellets 2.3 1.6 1.5 0.6 0.24tTotal 7.9 5.5 7.0 3.8 1.51t

pg(+1.1mtpa fines, -1.0mtpa pellets)

CoalCoking (1) 3.0 2.2 2.7 1.4 0.49tPCI 0.6 0.4 0.7 0.4 0.14tAnthracite 0 1 0 0 0 0 0 0 0 02t

Possible slight shift towards

higher PCI use

Includes around 300kt

consumed for export

(2)

Anthracite 0.1 0.0 0.0 0.0 0.02tTotal 3.7 2.6 3.4 1.8 0.65t

Scrap (3) 1.0 0.7 0.9 0.5 0.2t

in future in lieu of hard coking

coal

coke despatches

Scrap 1.0 0.7 0.9 0.5 0.2t

Raw Steel Production 5.3 3.5 4.7 2.6Export Coke Despatches 264kt 282kt 175kt 89kt

Note: (1) coking coal volumes shown are dry tonnes; market pricing is typically for wet tonnes, 8% moisture content difference to dry tonnes.(2) measure shows tonnage rate used in steel making, and excludes coal used for export coke making.(3) 40% of scrap feed is sourced externally; balance, internally sourced scrap. 21

Page 23: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

PKSW – Productivity

6,000 1,800E lProductivity (tonnes per person per year)

e/Yea

r)

4,7055,000

5,500

1 400

1,600

Employees

nnes

/Em

ploy

ee

3 1713,4063,5673,6103,6623,783

4,049

3 500

4,000

4,500

1,200

1,400

eel O

utpu

t, To

n3,1073,0873,1713,146

2,500

3,000

3,500

800

1,000

ivity

(Cru

de S

te

1 000

1,500

2,000

400

600

Prod

uct

0

500

1,000

0

200

^*Notes:* 2009 employees – includes 69 transfers in (principally manufacturing process research) due to internal restructure^ Based on 1H FY2011 annualised production

FY11^FY10FY09*FY08FY07FY06FY05FY04FY03FY02FY01

22

Page 24: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Springhill Springhill –– Coated ProductsCoated ProductsSpringhill Springhill –– Coated ProductsCoated Products

23

Page 25: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Springhill – Coated Products

• Springhill’s Coupled Pickle Cold Mill 990kt• Metal Coating Lines (3 lines) 825kt

24

• Metal Coating Lines (3 lines) 825kt• Springhill Paint Line 200kt

Page 26: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Coated Australia – Annual Capacities

Hot Strip Mill1,400 HRCWestern

Port

Cold Mill1 000

Pickle Line1,100 HRC

CRCSlab

Port Kembla Steelworks

Metal Coating Lines 830

1,000

Paint Lines

Metal Coated Strip

Paint Lines330 Painted Strip

HRC

Springhill

Coupled Pickled Cold Mill990 CRC990

Metal Coating Lines 825

Paint Lines

CRC

Metal Coated Strip

Painted Strip

Note:Numbers reflect mill capacity in kilotonnes.* There is an additional 215ktpa of combined capacity at Western Sydney and Acacia Ridge (Qld) paint lines.

200* Painted Strip

25

Page 27: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

SummarySummarySummarySummary

26

Page 28: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Summary

• Continued focus on safety, community and environment

• Continued focus on cost reduction initiatives

• Responding to meet market demands• Responding to meet market demands

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Page 29: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Q & A’s

28

Page 30: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Supporting InformationSupporting InformationSupporting InformationSupporting Information

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Page 31: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Cokemaking

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Page 32: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Cokemaking Process Overview

GAS PROCESSING3.0Mtpa

BLENDED COALTARSULPHATE

BTX (Benzene)

BLENDED COAL

39Kt 86Kt 23ML

COKE SCREENCOKE PLANT

COKE OVENS GAS 19,000TJ

Interworks energy (boilers,

furnaces)

2.3Mtpa COKE

SOLIDS LUMP(25 – 80 mm)

TATA

86%

7%

2%

1 tonne of coke solids is equivalent to 1.30t coking coal

Types of coke solids produced•Lump•TataN t

BREEZE(< 10 mm)

NUT(10 – 25 mm)

(20 – 50 mm)2%

5%

Typical yearly Coke usageExport coke

•Nut•Breeze

Typical yearly Coke usage (reflective of FY 2008)Blast furnaces 1.9MtpaSinter plant 0.2MtpaExport 0 2Mtpa

BlueScope approach is to sell excess production on a spot basis. Generally offered in 30-45kt cargo sizes.

175kt of coke sales in FY2010

31

Export 0.2Mtpa2.3Mtpa

Page 33: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Ore Preparation – Sinter and Raw Materials Handling

BuiltR d

19752009

No.3 Sinter Machine

Revamped 2009Grate Area 480 m2

Production 6.6 Mtpa

32

Productivity 38-40 t/m2/dBF Burden ~60 - 70%

Page 34: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

What is Sinter?

FINE ORESBlended and Fluxed in Sinter Machine to

LUMP ORESSinter Machine toProduce SinterPELLETS

SinterPellets Lump

PREPARED BURDENS

BLAST FURNACE 33

Page 35: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Raw materials Lump Ore

Blast furnace – Ironmaking ProcessRaw materials , Lump Ore, Sinter , Pellets, Coke & fluxes Charged Through top of furnace

Excess Hot gases flow from top of Furnace to Gas Cleaning Plant and reused for heating

Layers of Coke & Ferrous Materials descend over 8 hrs to bottom of furnace –soften then melt and collect in the hearth

100 oC

Molten Iron drained from

in the hearth Cast Iron / Copper Stave Cooling system

Hot Air (including additional Oxygen) i+ PCI s blown into Furnace through Tuyeres.Temp = 1200 Deg C

taphole in side of furnace into brick lined torpedo shaped vessels.

Slag converted to either ‘sand-like’ particles in a Granulator or p g

Pressure =370 KpaVelocity = 230 m/sec

like particles in a Granulator or ‘rock slag’ when cooled in pits

2200 oC1500 oC

Carbon Refractory Lining

34

Page 36: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Ironmaking – Blast Furnaces

No.5 Blast Furnace No.6 Blast Furnace

No.5BF No.6BFNo.5BF No.6BFBuilt 1972 1996Relined 1978, 1991, 2009 -C i Lif 15 20 20

35

Campaign Life 15 - 20 yrs >20yrsOutput 2.6 Mtpa 2.6 Mtpa

Page 37: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Steelmaking Process

Basic Oxygen Steelmaking (BOS)Molten iron (250t)

Scrap steelScrap steel(approx 60t) Oxygen blowing

* Annual Scrap Usage

Refractory lined

Annual Scrap Usage (indicative) 1mtpa

(approximately 40% sourced externally)

36

BOS furnaces3 x 280t

Page 38: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Slabmaking Process

Steel ladle

Steel ladleRevolvingturret

Tundish

Continuous Slab CastersMould5.3 Mtpa

Max. width = 2200mm

To cut-to-length

Hot Strip Mill, Plate Mill,

Max. length = 12.5m

Max thickness = 300mm

37

Westernport or exportMax. thickness = 300mm

Page 39: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Slabmaking

No 1 No 2 No 3No.1 No.2 No.3BOS 1972 1972 1983Caster 1978 1986 1986

385.3Mtpa total output

Page 40: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

HRC Process

Hot Strip Mill

Commissioned 1955 pgrades 1972 Commissioned 1955, upgrades 1972, 1985-1987 & 2000-2006

2 9 Mtpa2.9 MtpaProduct flow

Slabs ex Slab Casters

Coil boxCasters

Reheated to 1225°C

Dual reheat Roughing-

Six Stand Finishing Mill min. gauge 1.48mm

Dual reheat furnaces

g gReversing

Mill300mm – 25mm

39

Page 41: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Hot Strip Mill

Built 1955Major upgrades 1972, 1980, 1987, 1993, 2000-2009

40

2nd Walking Beam Furnace 2006Capacity 2.9 Mtpa

Page 42: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Plate Process

Slabs ex Slab Caster450ktpa capacity

Reheat Furnaces

p p y

Commissioned 1963 5mm-180mm thick x 1200mm-3400 id

Finishing Mill Roughing Mill

3400mm wide

Hot leveller

Descaling Box

Shearing, stencilling, shot blasting, prime

painting & inspectionProduct flow

41

Page 43: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Plate Mill

No1 Furnace & Stand 1 Rolling Mill 1963

42

No2 Furnace & No2 Stand Rolling Mill 1971Capacity 450,000t

Page 44: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

PKSW – Despatches by Half Year

2,4942,5552,6112,5992,609

1,361 1,2951 606 1,423 1 322BSL internal*

2,0812,118

1,606

1,411 1,203

1,423 1,322

1,348

699Export external

876710540

490267

526838782

100% exported, with geographic sales split being:

Asia 100%

466 466 479 440 422 296338159Domestic external

Dec-2010Jun-2010Dec-2009Jun-2009

490

Dec-2008Jun-2008Dec-2007Jun-2007External Product Sales Mix

31% sold domestically and 69% exported, with geographic split being:

Other 0%

Slab 30% 36% 30% 23% 22% 43% 28% 30%HRC 54% 51% 54% 57% 66% 47% 60% 58%Plate/Other 16% 13% 16% 20% 12% 10% 12% 12% Asia 41%

Europe 29%Americas 13%Other 17%

Plate/Other 16% 13% 16% 20% 12% 10% 12% 12%

Note: *Internal Customers include both domestic and export despatches

Page 45: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Springhill – Cold Rolling

Coupled Pickle Cold MillCOUPLED PICKLE COLD MILL Technical Capabilities

CPCM – Thick 0.30 – 3.30 mm

Scale removal (pickling) using hydrochloric acid

Thickness reduction via cold rolling

through five standsRecoiling using carousel reel

CPCM Thick 0.30 3.30 mm

Width 615 – 1320 mm

Hot rolled coil is uncoiled

y

To Metal Coating or P k & D t hPack & Despatch

Process: Hot rolled coil is pickled in hydrochloric acid to remove iron oxide to prepare th t i f ld lli C ld lli d t l thi k b i th the strip for cold rolling. Cold rolling reduces steel thickness by passing the hot rolled pickled strip through a series of five rolling stands. High roll force and strip tension allows the strip to be progressively reduced at each stand

itho t changing the idth The CPCM is a contin o s pickling operation without changing the width. The CPCM is a continuous pickling operation coupled to the cold reduction process.

Output: Sold as cold reduced uncoated steel, or sent to metal coating lines for

44

further processing.Capacity: 990 kt/a

Page 46: Port Kembla Steelworks & Springhill 22 January 2003 ... · Port Kembla Steelworks & Springhill ... ¾Deliver an improved sales and marketing effort and better integrated ... comprising

Springhill – Metal Coating

METAL COATING LINESTechnical Capabilities

MCL1 – Thick 0.03 – 3.30 mm Width 610 – 1240 mm

Pre-Heat Ovens Horizontal Cooling Baths

Skin Pass Mill T i L ll Passivation System

MCL2 – Thick 0.50 – 3.50 mm Width 610 – 1240 mm

MCL3 – Thick 0.30 – 1.00 mm Width 610 – 1240 mm

Natural Gas Fired Selas Furnace

Cooling Tower

Skin Pass Mill Tension Leveller Passivation System

Zincalume or Galvanized coil

Cold rolled coil is uncoiled

Metal Bath & Pre-melt Pot

Resin Coaters To PaintingTo Paintingor Pack & Despatch

Process: Cold reduced coils are hot dipped coated with ZINCALUME® coating (Nos 1 & 3 Lines) or galvanised (zinc) coating (No 2 & 3 Lines) to provide corrosion protectionOutput: Sold as ZINCALUME® coil or galvanised coil to building and manufacturing industries or processed further by our Paint Lines.ZINCALUME® ZINCSEAL® ZINCANNEAL® GALVASPAN®

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ZINCALUME®, ZINCSEAL®, ZINCANNEAL®, GALVASPAN®Capacity: 825 kt/a

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Springhill – Painting and Finishing

Primer OvensPrimer Coater

Automatic

PAINTINGPACK & DESPATCH

Main Oven Main Coater

Automatic Guided Vehicles

Inspect & Test

Chemical rinsing, cleaning & pre-treatmentPainted coil is recoiledLabelling Plastic

WrapProtective Packaging

Strapping Finished Coils

Coated Coilfrom Metal

Coating LiP U t d t l t d t i i th hl l d d LinesProcess: Uncoated or metal coated strip is thoroughly cleaned and

chemically treated to provide best surface to apply a primer coat followed by a finish coat of paint, via roller application, which is then oven cured Technical Capabilities

No.3 Paintline - Thick 0.20 – 1.5mm Width 600-1320 mm

which is then oven cured.Output: Building, packaging and manufacturing markets

COLORBOND® AQUAPLATE®

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COLORBOND®, AQUAPLATE®Capacity: 200 kt/a

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Springhill – Site History

1939 John Lysaght (Australia) Springhill Works begins full operation1955 4 stand continuous Cold Rolling Mill commissioned1955 4 stand continuous Cold Rolling Mill commissioned1968 Cold Rolling Mill upgraded to 5 stands1961 First continuous galvanising line commissioned1964 Second continuous galvanising line commissioned1966 Third continuous galvanising line commissioned1970 BHP acquires 50% of Lysaght’s1976 MCL1 converted to Zinc/Aluminium galvanising

No.3 Paint Line commissioned1979 BHP acquires 100% of Lysaght’s1989 New pickle line coupled to 5 stand Cold Rolling Mill (CPCM)1994 Decommissioning of Electrolytic Cleaning and Galvanising Line facilities1996 CPCM Carousel Recoiler and Entry Accumulator upgrade1996 CPCM Carousel Recoiler and Entry Accumulator upgrade

Integrated Coil Packaging and Handling Project2000 Closure of Batch Coil Annealing and Temper Rolling facilities2002 Transfer of the Slit Recoil Line to Acacia Ridge2003-05 Brownfield capacity increases2003-05 Brownfield capacity increases2005 Packaging Products site integrated under Springhill management as Illawarra Coated Products2007 Packaging Products Tinplate & Finishing department closed2008 Closure of CRM

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2009 Closure of Packaging Cold Mill

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Springhill – Environment

• Springhill site is a zero process water discharge site• Springhill site is a zero process water discharge site• all process water is treated through waste water treatment and returned to

Sydney Water for recycling.• only stormwater is received into the local environment.only stormwater is received into the local environment.

• Recertified to ISO 14001 April 2008.• Current DECCW site licenses.• Reviewed environmental improvement plan (2007 – 2008)• Reviewed environmental improvement plan (2007 – 2008)• DECCW recognition for make safe activities tin plating and finishing,

considered benchmark• Greenhouse gas targets are being established via benchmarking exercise• Greenhouse gas targets are being established via benchmarking exercise.• Water and energy intensity targets established.• Achieving better than target on electricity energy intensity.

W t d i t it ti t t k t d l• Water use and intensity continues to track at record lows.• Promote BlueScope Water products with installation of several 2 thousand litre

rain water tanks.C ti t l 100% f b d t t l l t HCL ith l

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• Continue to recycle 100% of by-product steel, solvent, HCL, with rags, gloves and oil

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22nd January 2003Port Kembla Steelworks & SpringhillPort Kembla Steelworks & SpringhillAnalyst Site VisitNoel CornishChief Executive Australian & New Zealand Steel Manufacturing

File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template

Chief Executive Australian & New Zealand Steel Manufacturing BusinessesMay 2011May 2011