Traded as ASX: ARI Revenue 6.085 billion AUD (2015) Type Public company | Founded 2000 | |
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Key people Jerry Maycock (Chairman, Non Exec. Director) Products iron ore, steel products Net income (A$-1.9 billion) (2015) CEO Andrew Roberts (1 Jul 2013–) Profiles | ||
Arrium corporate video
Arrium is an ASX listed international mining and materials company. The company employs nearly 10,000 workers. In April 2016 the company collapsed into voluntary administration with debts of more than $2 billion.
Contents
- Arrium corporate video
- Welcome to arrium mining
- History
- Whyalla iron ore export
- Incidents
- Financial difficulties and collapse
- Divisions
- Political lobbying
- References
Welcome to arrium mining
History
The company was spun out from BHP Billiton in 2000 as OneSteel when it was almost entirely a domestically focused steel manufacturer and distributor. The Whyalla steelworks, harbour and associated iron ore mining operations along the Middleback Range in South Australia were among its principal assets. The company subsequently focused on growing its resource based businesses and now has significant mining and mining consumables businesses, as well as its steel and recycling business.
In June 2006, an agreement was announced under which OneSteel would buy out scrap metal company Smorgon Steel for $USD 1.2 billion. However, concerns by the Australian competition regulator, the Australian Competition and Consumer Commission (ACCC) resulted in significant delays in this process, as did concerns from Australian construction industry trade unions regarding possible job losses from the merger of the two operations. The merger was completed in August 2007.
On 15 February 2008 it was announced that one of the bar mills in the Hunter Valley, and the mill in Melbourne, would be closed.
On 15 November 2010 OneSteel agreed to acquire two companies, Chile-based forged steel grinding balls producer Moly-Cop, and Canada-based AltaSteel, a producer of ball stock for forged grinding balls, for a total of $932 million.
On 22 December 2011 OneSteel sold its Piping Systems business, and associated property investments, to U.S.-based McJunkin Red Man Holding for a total of $100m.
On 6 October 2011 OneSteel completed the acquisition of WPG Resources' iron ore assets for an estimated A$320 million.
On 2 July 2012 OneSteel officially became Arrium Limited.
Whyalla iron ore export
In 2007, OneSteel commenced iron ore export from the port of Whyalla via transshipment. In October 2012, a new dual gauge railway balloon loop was commissioned at Whyalla with the purpose of increasing Arrium's iron ore export capacity to 12 million tonnes per annum. Arrium's iron ore export volumes from Whyalla peaked at 12.5 million tonnes per annum in 2013-14 and 2014-15. In March 2015, Arrium's Southern Iron project, which includes the Peculiar Knob mine, was "mothballed". Export volumes are expected to drop to between 9 and 10 million tonnes in 2015-16 and again to between 6 and 8 million tonnes from 2017. In October 2015, the company announced that it was working with the South Australian government to facilitate third party use of the Whyalla harbour to make use of its excess capacity.
Incidents
In 2012, a 37-year-old Whyalla man was killed while working on a barge during iron ore transshipment activities. The incident was investigated by Safework SA.
Financial difficulties and collapse
In 2015, the company announced a full-year loss of $1.9 billion
On 7 April 2016, Arrium's directors placed the company into voluntary administration by Grant Thornton International.
Divisions
The company has three primary reporting segments:
Political lobbying
Arrium is represented by registered political lobbyists in South Australia and at a federal level. As of April 2015, the company is represented at a Federal level by Michael Johnson Associates Pty Ltd, John O'Connor and Associates Pty Ltd, GRACosway Pty Ltd and Kreab Gavin Anderson (Australia) Ltd.