Bluescope Steel Limited · ASX:BSL
Bluescope Steel — Technical Presentation (November 2005)
32 slides from Bluescope Steel's technical presentation, Nov 22, 2005
Slide 1: Port Kembla Steelworks
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Slide 2: Important Notice
Important Notice 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. RELIANCE SHOULD NOT B
Slide 3: Furnace casing looking from charge end
Slide 4: Overview
Oveniew - Fully integrated plant with steel making capacity of 5.1mtpa. Optimal unit size. * Situated on 800 hectares and employing 3,600 people. « Amongst world’s most technically advanced, low cost producers of quality carbon steel products. ¢ Excellent technical and operational skills and experie
Slide 5: Port Kembla Steelworks - Safe
Port Kembla Steelworks - Safe Lost Time Injury Frequency Rate Medically Treated Injury Frequency Rate (Contractors & Employees) (Employees) 25.0 5 22.2 20.0 5 16.2 15.0 4 10.0 5 99100 00/04 01102 02103 03104 04105 04/02 02103 03/04 04/05
Slide 6: Steelmaking process flow
‘Scrap Steal . Ore wen, wy $5. Oxygen: Continueus. = wok 7 Sib Caster | ; ae ae am) ten yg Limestone : &, . Transfer Ladie (ay ~ ee Molisn iron Coal Ladle Treatment —=, ‘ nt ce Cast Slabs Basic Oxygen Vacuum ¢ Steelmaking (B:0.5:} degaeser } } 7 7 | aq . 4 Coats: Cooling Sprays | Alniout Table - Ha
Slide 7: Raw Material Feed
Raw Material Fee Iron Ore: - approximately 7.6mtpa - indicative mix - 20% lump, 60% fines and 20% pellets - principally sourced from BHP Billiton. Other suppliers include OneSteel, Savage River, {OC (RIO) and CVRD - annual pricing review * Coal: - approximately 3.3mtpa (2.8mtpa coking coal and 0.5mt
Slide 8: Port Kembla Steelworks Production
Port Kembla Steelworks Production 6.0 5 Million Tonnes 99/00 00/01 01/02 02/03 03/04 04/05 Slab @ Plate
Slide 9: Port Kembla Steelworks Productivity
Port Kembla Steelworks Productivity 7,000 5 r 1,000 6,000 5 + 900 ; 800 + 700 Employee Numbers Productivity (Crude Steel Output, Tonnes/Employee/Year) T 2000 2001 2002 2003 2004 2005 “#2 Employees (Port Kembla Steelworks) =—*—Productivity (Tonnes per person per year) T T
Slide 10: Port Kembla Steelworks Delivery Performance (all products)
Port Kembla Steelworks Delivery Performance (all products) _ 100 99/00 00/01 01/02 02/03 03/04 04/05
Slide 11: Port Kembla Steelworks — FY2005 Product Flow (Indicative)
Port Kembla Steelworks — FY2005 Product Flow (Indicative) - PortKembla Steelworks _ 5.1mt slab p.a. C&BP Australia (Western Port) 20% | Hot Strip Mill [MN Plate Mill 30 Hamsethiupn C & BP Australia pons HRC (Springhill) 60% * “C8&BP Australia” is Coated and Building Products Australia
Slide 12: Port Kembla Steelworks - FY2005 External Sales by Region
Port Kembla Steelworks - FY2005 External Sales by Region North Asia ff South East Asia om ft 1 mestic HRC || 30%) _ Pipe & Tube - Manufacturing Distribution
Slide 13: Australia market: imports and exports
~~ Australia Direct Imports (approx. 20% of market) - HRC - Plate Indirect Imports - Fabricated Structures - Manufactured goods & components, eg. cars Intermaterial - Reinforced concrete construction * * Export Slabs Brazil Russia Ukraine HRC Japan Korea China Plate Japan Korea Indonesia China
Slide 14: Product Initiatives / Branding
Product Initiatives / Branding _ ATTRA Cs ih TTT Xlerplate
Slide 15: Historical Data
Historical D: FISCAL YEARS 1999 | 2000 | 2001 2002 2003 2004 | 2005 Raw Steel (mt) 4.8 4.9 4.8 4.8 5.0 5.1 5.1 Capex (A$m) () 77 38 47 80 83 65 139 Sales Volumes (‘000 tonnes) - Domestic 853 813 762 807 877 981 1,050 - Export 1,633 | 1,297 | 1,604 | 1,365 | 1,567 | 1,504 | 1,377 - Internal 2.340 | 2
Slide 16: Significant Capital Projects
-_ Significant Capital Commissioning Date Project Capex (A$m) FY 1992 - 1996 No. 6 Blast Furnace 478 1995 - 2000 5mtpa Project 91 1996 - 2000 Coke Side Emission Control 90 2001 - 2003 Sinter Plant Emission 94 2005 — 2007 Hot Strip Mill Expansion 100 2006 - 2008 BF No. 5 Reline 300 (project not appro
Slide 17: Support for our community
Support for our community $500,000 in sponsorships * Support 26 Illawarra organisations * $80,000 in donations towards charities, schools, sport, employees and their families * $100,000 to Wollongong University scholarships * $300,000 towards new regional headquarters for SES * $50,000 support to Au
Slide 18: Blast Furnace No. 5 Reline
BlastFurnaceNo.5Relne = °* y ; Study progressing °° Decision on work scope FY2006 History - BF No. 5 > Built in 1972 > Previous reline took place 1991 > Currently produces approximately 2.6mtpa of hot metal °° Scope of work > Extend to replacement / upgrade of associated equipment items not covered
Slide 19: Hot Strip Mill Expansion
Hot Stip lll Expansion * Safety & Environment — No LTI’s or serious incidents * On budget ($100 million) * On schedule for Q1 FY 06/07 Start-up * 99% of equipment on site * Software Factory Acceptance Test (FAT) currently in progress * Refractory installation commenced * Operator/maintenance trainin
Slide 20: Slide 20
Slide 21: Furnace discharge end showing extractor equipment
Furnace discharge end showing extractor equipment _
Slide 22: Front End Loading Impact on Asset / Project Value
Front End Loading Impact on Asset / Project Value PS Identification/Creation SS Value Realisation —_—> concert | PRE — | Feasipiity |yocuuy,) EXECUTE | OPERATE _ essere | PRO Se Si ES | Good Project A) Execution . me | Good Project ; Definition ui : . Poor Project “] = Execution z — | coodProject |
Slide 23: Capital Approval Process
s Capital A | Repeal ahaa Apouale nese JU) pieisla Ona es lop Agreed Divisional Besiness Pilamn ime € hock against Basiness al PiaolStratogy tee Dopt Busines BlueScope Steet Indasivial Markets. Anse Ba MM ete) Capital Developm emt Services Review, Acsict ang Business Toligate oes the project concept
Slide 24: Port Kembla Steelworks is a large consumer of fresh water
e Port Kembla Steelworks is a large consumer of fresh water e Weare actively implementing Sydney Water's "Every Drop Counts" program e Fresh water consumption has dropped from 5.5 to 2.7KL/tonne per slab over the last decade e Over the next few months, Sydney water will commence supplying 20Megalitr
Slide 25: Supporting Information
Supporting lfomaton
Slide 26: Coke Making / Sintering Process
Coke Making / Sin ering Process. -
Slide 27: Blast Furnace - Iron Making Process
Blast Furnace -Iron Making Process Coke and gases burn to create temperatures up to 8 2200°C; iron melts out of the 4 iron ore and reacts with | carbon in the coke while limestone (flux) melts also Raw materials (iron and forms slag. ore, coal [coke] and limestone are fed into Molten iron and slag f
Slide 28: Steelmaking Process
- Steelmaking Process — Molten Scrap stee (approx. 45t) * Annual Scrap Usage y 7 7, 7 (indicative) 1mtpa | 2 (approximately 50% sourced externally) Refractory lined BOS furnaces 3 x 280t
Slide 29: Casting process
_® wm a Oo Ss oO 2 = = —& a a Steel ladle Tundish Plate To cut-to-length Hot Strip { M Westernport or export
Slide 30: Hot strip mill product flow
wo @ Oo C oO x as Product flow a Slabs ex Slab Casters 480tph @ Six Stand Finishing Mill min. gauge Roughing- Reversing 1.48mm 1225°C 300mm — 25mm
Slide 31: Plate mill product flow
. Q oO = Oo ——— oa oOo Slabs ex Slab Caster Reheat Furnaces Descaling Box ing Rough Mill ing ish Mill Fin Hot leveller A ‘Product flow stencilling, shot blasting, ing t ion prime pain & inspect
Slide 32: Port Kembla Steelworks
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BlueScope Steel — Technical Presentation (November 2005) on 6ix