Site of the Boulder Steel project near Mt Larcom.
Site of the Boulder Steel project near Mt Larcom.

Good news short lived: Boulder Steel back in administration

BOULDER Steel is back in the hands of administrators, just hours after it was returned to the hands of company directors.

The troubled $4 billion Boulder Steel project hit financial woes in July, going into voluntary administration in a bid to raise capital.

Grant Thornton Australia were called in to administer the business and run the ruler over a number of "deed of company arrangement" offers which would essentially bolster the company's bottom line and allow it to continue getting the project up and running.

Control of the company was returned to directors on October 30, a day after a meeting with creditors.

A letter from the administrator explained that full minutes of that meeting would be available on its website "in due course".

However, these minutes are not yet available.

At 5.57pm on the same day, directors at Boulder Steel elected to place the company back into voluntary administration, this time handing the company over to Nicols + Brien.

Steven Nicols has been listed as the registered liquidator.

If the project goes ahead in its current form, it will involve the construction and operation of an integrated steel plant near Mount Larcom, to be constructed in two stages.

Stage one will have a plant production capacity designed to produce 2.5 million tonnes per year of high quality steel. Sage two will increase the production capacity to 5 Mtpa.

First construction activities were planned to start last next year, with stage one being operational by late 2016.

Plant output will increase to full capacity as soon as practicable after completion of stage one, with full operating capacity expected by 2018.

Comment is being sought from the Sydney-based administrators.