Photo by: Bloombeg
PERTH (miningweekly.com) – ASX-listed Arrium Mining and Materials will proceed with the disposal of its Mining Consumables division, following a review to gauge the level of interest from third parties.
In August, Arrium flagged the possible sale of the division, after receiving expressions of interest from a number of parties.
Given the strong interest, the company had decided to move to the next stage of the process, which would entail shortlisting a select group of parties to undertake detailed due diligence on the division.
Arrium on Thursday said the company continued to assess a number of alternatives to provide more diverse and flexible debt funding to ensure that its debt structures were appropriate irrespective of whether the Mining Consumables disposal proceeded.
The company was also progressing work to improve group profitability and cash generation through resetting its cost base for the challenging external environment, which included transforming its Steel, Recycling and Mining divisions to ensure the businesses remained competitive.
Arrium had previously announced at least A$60-million of yearly cost reductions, which would be delivered by the end of 2016, and work to achieve this target was progressing well, the company said.
A further A$100-million of annualised cost reductions had also been earmarked at the Whyalla steelworks, which would be gained through efficiency improvements over the next two years.
The company was, meanwhile, also assessing additional opportunities, including through a redesign of its organisational structure to further lower its cost base and improve performance.