Bluescope Steel Limited · ASX:BSL

Bluescope Steel — Technical Presentation (September 2009)

58 slides from Bluescope Steel's technical presentation, Sep 29, 2009

  1. Slide 1: Port Kembla Steelworks & Springhill Analyst Site Visit

    For personal use only 22nd January 2003 Port Kembla Steelworks & Springhill Analyst Site Visit Noel Cornish Chief Executive Australian & New Zealand Steel Manufacturing Businesses File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template September 2009

  2. Slide 2: Important Notice

    Important Notice For personal use only THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, INVITATION OR RECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPE STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL ADVICE.

  3. Slide 3: Introduction

    For personal use only Introduction 3

  4. Slide 4: Single point of focus for Australian & New Zealand Steel Manufacturing Businesses

    Single point of focus for Australian & New Zealand Steel Manufacturing Businesses For personal use only Managing Director and CEO Legal (Michael Barron) CFO (Charlie Elias) Paul O’Malley People and Organisation Performance (Ian Cummin) Aus/NZ Steel Australian Coated Australian Corporate Strategy Man

  5. Slide 5: Australian & New Zealand Steel Manufacturing Businesses

    Australian & New Zealand Steel Manufacturing Businesses For personal use only Noel Cornish Chief Executive ANZSMB Sharon Wingate Personal Assistant Ross Murray Alan Thomas Barb Bridger Oscar Gregory Gabe Meena Aimee Allen Chris Fogarty John Nowlan President General Manager General Manager General Ma

  6. Slide 6: Agenda

    Agenda For personal use only • Safety • Water conservation • Community • Port Kembla Steelworks – Process and Production – Costs and Raw materials – Capital – No. 5 Blast Furnace reline – Sinter Plant upgrade • Coated Businesses – Process and production • Summary 6

  7. Slide 7: Safety, Water Conservation, Community & Markets

    For personal use only Safety, Water Conservation, Community & Markets 7

  8. Slide 8: Safety – Australian & New Zealand Steel Manufacturing Businesses

    Safety – Australian & New Zealand Steel Manufacturing Businesses For personal use only Lost Time Injury Frequency Rate Medically Treated Injury Frequency Rate 5 40 4.5 4.3 34.0 35 4 3.7 30 3.5 3 3 25 2.5 2.2 20 17.8 2 1.8 14.1 15 1.5 1.3 10.4 0.8 10 7.7 1 0.7 0.6 4.9 5.3 4.7 3.5 3.9 0.5 0.3 5 0 0 99

  9. Slide 9: Environment – Continued Improvement in Water Conservation

    Environment – Continued Improvement in Water Conservation For personal use only Port Kembla Steelworks Springhill Works • World class water efficiency for an integrated • Water input is >50% recycled water steelworks. • 14,700 ML of recycled water used since Oct 2006. • Options being investigated fo

  10. Slide 10: Community Engagement

    Community Engagement For personal use only • Policy of supporting education, youth, arts and culture • Active participation in a variety of community initiatives e.g. Youth Unemployment Committee • Support 30+ Illawarra organisations • $500,000 in sponsorships • $80,000 in donations towards charitie

  11. Slide 11: Markets and Supply Chain

    Markets and Supply Chain For personal use only Western Port Building & Construction Illawarra Direct Distribution Domestic & Solutions Manufacturing Australia Export Distributors Pipe & Tube 11

  12. Slide 12: Port Kembla Steelworks

    For personal use only Port Kembla Steelworks 12

  13. Slide 13: Port Kembla Steelworks overview

    Port Kembla Steelworks overview For personal use only • Fully integrated plant with steel making capacity of 5.3Mtpa. Optimal unit size. • Situated on 760 hectares and employing 3,400 permanent employees (plus 1,500 - 2,500 contractors on any given day). • Amongst world’s most technically advanced p

  14. Slide 14: Overview of Steel Production Process – Port Kembla Steelworks

    Overview of Steel Production Process – Port Kembla Steelworks For personal use only SINTERING Coal Iron Ore BLAST FURNACE Sintered ore COKE OVEN Coke Molten pig iron Slag CONVERTER (BOS) “Graded” Liquid Steel REFINING STAND CONTINUOUS CASTING Slab REHEAT FURNACE ROLLING MILL Hot Rolled Coils 14

  15. Slide 15: PKSW – Production & Despatch Flow, FY2008 & FY2009

    PKSW – Production & Despatch Flow, FY2008 & FY2009 For personal use only Port Kembla Steelworks Slab Production Slab Export FY09 FY08 1,098 1,909 302 763 3,517 5,285 Interco Western Port (2) 796 1,146 Inventory movements & yield losses Hot Strip HRC Domestic Mill 2,075 2,881 425(3) 653 Port Kembla S

  16. Slide 16: Port Kembla Steelworks – No.5 Blast Furnace Reline

    Port Kembla Steelworks – No.5 Blast Furnace Reline For personal use only 16 16

  17. Slide 17: No.5 Blast Furnace Reline

    No.5 Blast Furnace Reline For personal use only • History – No. 5 BF – Built in 1972, relined in 1978, 1991 and now 2009 – Nameplate capacity approximately 2.6 Mtpa of hot metal • No.5 reline undertaken from 18 January to 19 August 2009 • Total capital cost in line with budget of A$372M • Restarted

  18. Slide 18: No.5 Blast Furnace Reline (cont’d)

    No.5 Blast Furnace Reline (cont’d) For personal use only Reline activities have entailed the following stages: Shut-down & tap • Copy book run-down; salamander • 580 t salamander tapped; no blasting in hearth required Demolition • Site manpower peaked at just under 1,200 people / day • Excellent saf

  19. Slide 19: No.5 Blast Furnace Reline

    No.5 Blast Furnace Reline …major capital investments in our future For personal use only Photo courtesy Illawarra Mercury 19

  20. Slide 20: No.5 Blast Furnace Reline

    No.5 Blast Furnace Reline …major capital investments in our future For personal use only Photos courtesy Illawarra Mercury 20

  21. Slide 21: No.5 Blast Furnace Reline

    No.5 Blast Furnace Reline For personal use only Photos courtesy Illawarra Mercury y The carbon hearth, refractories and staves (furnace shell cooling elements) were completely stripped out of the blast furnace and replaced with new ones. Internal platforms enabled work at multiple levels. 21

  22. Slide 22: Port Kembla Steel Production

    Port Kembla Steel Production For personal use only ƒ No. 6 Blast Furnace has been operating at capacity. ƒ No. 5 Blast Furnace is going through the final stages of its ramp up process following completion of the reline. ƒ Average combined capacity utilisation for 1Q is expected to be approx 70% ƒ St

  23. Slide 23: Sinter Plant Upgrade

    Sinter Plant Upgrade For personal use only y Sinter plant re-commissioned 29 June 2009 y Total capital cost approximately A$140m y No.3 Sinter machine at PKSW (prior to upgrade) ¾ was single source of 5.3 Mtpa of sinter for No. 5 & No. 6 Blast Furnaces ¾ the typical blast furnace burden mix prior to

  24. Slide 24: The Sinter Plant underwent a major upgrade and 20% increase in capacity

    The Sinter Plant underwent a major upgrade and 20% increase in capacity For personal use only Photos courtesy Illawarra Mercury 24

  25. Slide 25: Port Kembla Steelworks – cost profile

    Port Kembla Steelworks – cost profile For personal use only Total cost $ A$m FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 1H09 2H09 FY2009 S&A Conversion Costs Despatch & Freight Raw Materials − Chart shows cost of despatches − Conversion costs include depreciation − Raw material includes iron ore, coa

  26. Slide 26: Global iron ore fines, coking coal and semi soft coal benchmark prices

    Global iron ore fines, coking coal and semi soft coal benchmark prices For personal use only 2002 2003 2004 2005 2006 2007 2008 2009 2010 Iron Ore Fines $17.97 $17.54 $19.12 $22.68 $38.88 $46.27 $50.66 $91.14 $61.061 US$/dmt % change 4.3% -2.4% 9.0% 18.6% 71.5% 19.0% 9.5% 79.9% -33% Hard Coking Coal

  27. Slide 27: PKSW – Consumption of primary raw materials

    PKSW – Consumption of primary raw materials For personal use only Volume consumed in production (dry Mt) FY2007 FY2008 FY2009 – Coking coal principally sourced from local BHP Coal Billiton Illawarra mines (30 Coking 2.9 3.0 2.2 year contract from July 2002) PCI 0.7 0.6 0.4 – PCI coal sourced from a

  28. Slide 28: Port Kembla Steelworks productivity

    Port Kembla Steelworks productivity For personal use only Productivity (Crude Steel Output, Tonnes/Employee/Year) Employees Productivity (Tonnes per person per year) 6,000 2,000 1,750 1,500 4,000 1,250 Employee Numbers 1,000 750 2,000 500 250 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 FIS

  29. Slide 29: Springhill – Coated Products

    For personal use only Springhill – Coated Products 29

  30. Slide 30: Springhill – Coated Products

    Springhill – Coated Products For personal use only • Springhill’s Coupled Pickle Cold Mill 990kt • Metal Coating Lines (3 lines) 825kt • Springhill Paint Line 200kt 30

  31. Slide 31: Coated Australia – Annual Capacities

    Coated Australia – Annual Capacities For personal use only Western Hot Strip Mill HRC Port 1,430 Pickle Line HRC 1,150 Slab Cold Mill CRC 1,000 Port Kembla Metal Coating Lines Metal Coated 830 Strip Steelworks Paint Lines Painted Strip 330 HRC Springhill Coupled Pickled Cold Mill CRC 990 Metal Coati

  32. Slide 32: Summary

    For personal use only Summary 32

  33. Slide 33: Summary

    Summary For personal use only • Continued focus on safety, community and environment • Successful ramp up of upgraded facilities • Continued focus on cost reduction initiatives • Responding to meet market demands 33

  34. Slide 34: Q & A’s

    For personal use only Q & A’s 34

  35. Slide 35: Supporting Information

    For personal use only Supporting Information 35

  36. Slide 36: Cokemaking – Coke Oven Batteries

    Cokemaking For personal use only Coke Oven Batteries 36

  37. Slide 37: Cokemaking process overview

    Cokemaking process overview For personal use only GAS BTX 3.0Mtpa PROCESSING SULPHATE TAR (Benzene) BLENDED COAL 39Kt 86Kt 23ML Interworks COKE OVENS GAS energy 19,000TJ (boilers, furnaces) COKE PLANT COKE SCREEN 86% Types of coke 2.3Mtpa solids produced 1 tonne of coke solids is COKE LUMP SOLIDS 7%

  38. Slide 38: Ore Preparation – sinter and raw materials handling

    Ore Preparation – sinter and raw materials handling For personal use only Raw Materials Handling No.3 Sinter Machine Built 1975 Revamped 2009 Grate Area 480 m2 Production 6.6 Mtpa Productivity 38-40 t/m2/d BF Burden ~60 - 70% 38

  39. Slide 39: What is sinter?

    What is sinter? Whyalla Fines Carajas Fines Yandi Fines Mt Newman Fines For personal use only FINE ORES Blended and Fluxed in Sinter Machine to Produce Sinter PELLETS LUMP ORES Savage River Pellets Sinter Mt Newman Lump PREPARED BURDENS BLAST FURNACE 39

  40. Slide 40: Blast furnace – ironmaking process

    Blast furnace – ironmaking process For personal use only Coke and gases burn to create temperatures up to 2200ºC; “chemical reduction” process creates molten iron and CO2 while limestone (flux) melts and forms slag. Raw materials- iron ore lump, sinter, pellets, coke Molten iron and slag fall to the

  41. Slide 41: Ironmaking – Blast Furnaces

    Ironmaking – Blast Furnaces For personal use only No.5 Blast Furnace No.6 Blast Furnace No.5BF No.6BF Built 1972 1996 Relined 1978, 1991, 2009 - Campaign Life 15 - 20 yrs >20yrs Output 2.6 Mtpa 2.6 Mtpa 41

  42. Slide 42: Steelmaking process

    Steelmaking process For personal use only Basic Oxygen Steelmaking (BOS) Molten iron (250t) Scrap steel (approx 60t) Oxygen blowing * Annual Scrap Usage (indicative) 1mtpa (approximately 40% sourced externally) Refractory lined BOS furnaces 3 x 280t 42

  43. Slide 43: Slabmaking process

    Slabmaking process For personal use only Steel ladle Revolving Steel ladle turret Tundish Continuous Slab Casters Mould 5.3 Mtpa Max. width = 2200mm Max. length = 12.5m To cut-to-length Hot Strip Mill, Plate Mill, Max. thickness = 300mm Westernport or export 43

  44. Slide 44: Slabmaking

    Slabmaking For personal use only No.1 No.2 No.3 BOS 1972 1972 1983 Caster 1978 1986 1986 5.3Mtpa total output 44

  45. Slide 45: HRC process

    HRC process For personal use only Hot Strip Mill Commissioned 1955, upgrades 1972, 1985-1987 & 2000-2006 2.9 Mtpa Product flow Slabs ex Slab Coil box Casters Reheated to 1225°C Six Stand Finishing Mill min. gauge 1.48mm Dual reheat Roughing- furnaces Reversing Mill300mm – 25mm 45

  46. Slide 46: Hot Strip Mill

    Hot Strip Mill For personal use only Built 1955 Major upgrades 1972, 1980, 1987, 1993, 2000-2009 2nd Walking Beam Furnace 2006 Capacity 2.9Mtpa 46

  47. Slide 47: Plate process

    Plate process For personal use only Slabs ex Slab Caster 450ktpa capacity Commissioned 1963 5mm- 180mm thick x 1200mm- Reheat Furnaces 3400mm wide Finishing Mill Roughing Mill Hot leveller Descaling Box Shearing, stencilling, shot blasting, prime Product flow painting & inspection 47

  48. Slide 48: Plate Mill

    Plate Mill For personal use only No1 Furnace & Stand 1 Rolling Mill 1963 No2 Furnace & No2 Stand Rolling Mill 1971 Capacity 450,000t 48

  49. Slide 49: Port Kembla Steelworks despatches

    Port Kembla Steelworks despatches For personal use only 6,000 5,268 5,209 5,210 4,922 5,000 32% 26% 4,000 28% 40% 3,466 (ktonnes) 18% 18% 22% 3,000 21% 16% 17% 2,000 51% 44% 50% 56% 61% 1,000 0 FY2005 FY2006 FY2007 FY2008 FY2009 Internal Customers Domestic Customers Export Customers External Product

  50. Slide 50: Indicative steelmaking raw material mix

    Indicative steelmaking raw material mix For personal use only • Taking account of the benefit of the sinter plant upgrade the indicative raw material mix is as follows: Per slab tonne Excludes Coal used for coke despatches ¾ Coking coal (dry tonnes) 0.5t Benchmark price quoted in ¾ PCI 0.13t wet ton

  51. Slide 51: Port Kembla Steelworks Capital Expenditure

    Port Kembla Steelworks Capital Expenditure For personal use only Commissioning Project Capex (A$m) 1996 No. 6 Blast Furnace 478 2000 5mtpa Project 90 2001 Coke Side Emission Control 91 2004 Sinter Plant Emission 94 2006 Hot Strip Mill Expansion 100 2009 No. 5 BF Reline 372 2009 Sinter Plant Upgrade

  52. Slide 52: Springhill – cold rolling

    Springhill – cold rolling For personal use only COUPLED PICKLE COLD MILL Technical Capabilities Coupled Pickle Cold Mill CPCM – Thick 0.30 – 3.30 mm Thickness reduction via cold rolling Recoiling using carousel reel Width 615 – 1320 mm through five stands Scale removal (pickling) using hydrochloric

  53. Slide 53: Springhill – metal coating

    Springhill – metal coating For personal use only Technical Capabilities METAL COATING LINES MCL1 – Thick 0.03 – 3.30 mm Width 610 – 1240 mm MCL2 – Thick 0.50 – 3.50 mm Width 610 – 1240 mm Pre-Heat Ovens Horizontal MCL3 – Thick 0.30 – 1.00 mm Width 610 – 1240 mm Cooling Baths Skin Pass Mill Passivati

  54. Slide 54: Springhill – painting and finishing

    Springhill – painting and finishing PACK & DESPATCH For personal use only PAINTING Primer Ovens Primer Coater Automatic Guided Vehicles Main Oven Main Coater Inspect & Test Painted coil is recoiled Chemical rinsing, cleaning & pre-treatment Labelling Strapping Protective Plastic Finished Coated Coil

  55. Slide 55: Springhill – zinc / aluminium consumption

    Springhill – zinc / aluminium consumption For personal use only Zinc Aluminium 14000 12000 10000 Tonnes 8000 6000 4000 2000 2005/06 H1 2005/06 H2 2006/07 H1 2006/07 H2 2007/08 H1 2007/08 H2 2008/09 H1 2008/09 H2 55

  56. Slide 56: Springhill Site History

    Springhill Site History For personal use only 1939 John Lysaght (Australia) Springhill Works begins full operation 1955 4 stand continuous Cold Rolling Mill commissioned 1968 Cold Rolling Mill upgraded to 5 stands 1961 First continuous galvanising line commissioned 1964 Second continuous galvanising

  57. Slide 57: Springhill environment

    Springhill environment For personal use only • Springhill site is a zero process water discharge site • all process water is treated through waste water treatment and returned to Sydney Water for recycling. • only stormwater is received into the local environment. • Recertified to ISO 14001 April 20

  58. Slide 58: Port Kembla Steelworks & Springhill Analyst Site Visit

    For personal use only 22nd January 2003 Port Kembla Steelworks & Springhill Analyst Site Visit Noel Cornish Chief Executive Australian and NZ Steel Manufacturing Businesses September 2009 - BlueScope Lysaght PowerPoint Template File Reference: u:\Guidelines

BlueScope Steel — Technical Presentation (September 2009) on 6ix