Likelihood of steel plant project breaks through 75% mark
BOULDER Steel Rescue Group has been quietly working behind the scenes to secure the Gladstone Steel project, with funds raised close to the goal of $300,000 and a number of international steel buyers showing strong interest.
There have been three expressions of interest for the offtake of 3.4 million tonnes per annum of production so far.
Project co-ordinator Paul Sundstrom said the likelihood of the project proceeding had broken through the 75% mark, but that meant there was still a 25% risk of things not working out.
"So if you are thinking of taking advantage of the investment opportunity, you will need to move fairly quickly now, but as always please be mindful of the risks involved," he said.
"Total funds raised to date is very close to $300k, and this has got us control of the project and well on the way to owning it outright."
Mr Sundstrom said the BSRG was in the final stages of tidying up documents with shared deed of company agreement holder Otsana for Boulder Steel Ltd to ensure all rights were protected.
"This has been a major exercise, and the legal costs will reflect this, but it had to be done, and done properly, to secure our future," he said.
- July 2008: Gladstone is chosen as the new home for the steel plant, owing to its proximity to the port, power, rail and coal.
- May 2009: The environmental impact statement draft terms of reference are released.
- July 2013: Boulder Steel Ltd goes into voluntary administration.
- December 2013: Boulder Steel Rescue Group volunteers a community ownership proposal to save the project.
- February 2014: Creditors approve a joint venture Otsana/BSRG proposal.
- May 2014: Behind-the-scenes work is progressing, with the $300,000 deposit almost raised.