BlueScope Steel Announces the Divestment of the Taharoa Iron Sands Business For NZ$250 Million
26 August 08
BlueScope Steel Limited (ASX: BSL) today announced the NZ$250 million sale of its New Zealand iron sands mining and export operation, the Taharoa Iron Sands Business, to Cheung Kong Infrastructure Holdings Limited.
New Zealand Steel operates two iron sands mining operations, Taharoa and Waikato North Head, through its subsidiary, New Zealand Steel Mining Limited ("NZSM"). The Taharoa mining operation is a purely export focused business, whilst Waikato North Head is integral to New Zealand Steel’s steel making operations at Glenbrook, and will remain with the company.
Announcing the transaction, BlueScope Steel Managing Director and CEO, Mr Paul O'Malley, said, "the sale generates a strong financial return for BlueScope Steel and reflects the current high world demand for iron ore. We are pleased with the financial outcome from this transaction."
"I commend the employees of Taharoa who have, over a number of years, run this very successful business. Their work has underpinned the significant value of the asset. I also commend the significant efforts of employees and management at New Zealand Steel in developing a successful business model and mine expansion strategy."
BlueScope Steel remains committed to the ongoing development of its New Zealand business and is retaining ownership of its primary iron sands mine at Waikato North Head. The Waikato North Head mine supplies New Zealand Steel’s steelmaking operations and is a strategic component of the overall New Zealand platform. The Waikato North Head mine has ample reserves to provide for current and future steelmaking at New Zealand Steel, and together with its dedicated employee group is a key component of New Zealand Steel’s future.
The sale is expected to be completed by the fourth quarter of calendar 2008, and is subject to conditions including New Zealand Overseas Investment Office approval.
Merrill Lynch acted as financial advisor to BlueScope Steel on the sale and Chapman Tripp as its legal counsel.
About New Zealand Steel
New Zealand Steel is a wholly owned subsidiary of international steel company, BlueScope Steel Limited. The company is a global leader in the provision of high quality metallic coated and painted steel solutions to the building and construction sector, and it also supplies customers in the general manufacturing and automotive sectors.
BlueScope Steel was listed on the Australian Stock Exchange (ASX) as BHP Steel (ASX listing: BSL) in July 2002 after its demerger from global resources company, BHP Billiton. The Company changed its name to BlueScope Steel in November 2003 as a condition of its demerger from BHP Billiton. It provides employment opportunities to over 20,500 people at 114 manufacturing sites in 17 countries around the world.
For more information about BlueScope Steel, please visit its website at www.bluescopesteel.com
For more information about New Zealand Steel, please visit its website at www.nzsteel.co.nz
About the Taharoa Iron Sands Business
The Taharoa Iron Sands Business is a dedicated export business based 200 km south of Auckland on the west coast of New Zealand’s North Island. The Taharoa Iron Sands Business mines and exports iron sand to steel producers in China and Japan. Currently it employs 40 full time staff and exports approximately 850kt of iron sand per annum. In the year ended 30 June 2008, the Taharoa Iron Sands Business reported revenue of approximately NZ$53m and EBITDA of approximately NZ$16.7m.
The Taharoa Iron Sands Business is owned and operated by NZSM and was acquired by BlueScope Steel (BHP at the time of the acquisition) as part of the acquisition of New Zealand Steel from the New Zealand Government in 1992. The transaction will be a sale of shares in NZSM. Prior to the sale of NZSM, the Waikato North Head operations, including all associated assets and liabilities, will be transferred to the New Zealand Steel group.
For further information about BlueScope Steel Limited: www.bluescopesteel.com
CONTACTS:
| Media | Investor |
| Sandi Harwood | John Knowles |
| Manager External Affairs | Vice President Investor Relations |
| BlueScope Steel Limited | BlueScope Steel Limited |
| Tel: +61 3 9666 4039 | Tel: +61 3 9666 4150 |
| Mobile: +61 (0)411 027 006 | Mobile: +61 (0)419 893 491 |
| E-mail: Sandi.Harwood@bluescopesteel.com | E-mail: John.Knowles@bluescopesteel.com |
Print this Page
Email this Page
BlueScope Steel Limited ABN 16 000 011 058 BlueScope is a trademark of BlueScope Steel Limited
