Arcelormittal South Africa Limited · JSE:ACL
Arcelormittal South Africa — Mittal Steel South Africa — Investor Day (November 2005)
32 slides from Arcelormittal South Africa's investor day presentation, Nov 30, 2005
Slide 1: Mittal Steel South Africa Capital Projects Information Day
MITTAL STEEL SOUTH AFRICA CAPITAL PROJECTS INFORMATION DAY Programme – 30 November 2005 10:00 – 10:15 Opening and welcoming by the CEO 10:15 – 10:45 Presentation by General Manager, Procurement & Logistics 10:45 – 11:15 Presentation by Manager, Relines 11:15 – 12:00 Closure by General Manager, Procu
Slide 2: Today's discussion
Today’s discussion • Mittal Steel South Africa Strategic Goals and Throughput Strategy • Overview of Capital Projects planned by Mittal Steel South Africa Limited (2006 – 2010) • Blast Furnace D Reline 2006 • BEE and areas of concern 2
Slide 3: Strategic Goals and Throughput Strategy of Mittal Steel South Africa
Strategic Goals and Throughput Strategy of Mittal Steel South Africa
Slide 4: Strategic Goals
Strategic Goals • Industry leading value-creation for our shareholders - Positive EVA over the cycle • Improve operating Capabilities - Value-creating throughput increases of 2 Mtpa - 20% reduction in HRC/billet cash cost by 2007 • Build a high performance culture - Create an environment that genera
Slide 5: Throughput Strategy
Throughput Strategy • Increase production by – 1,5 Mtpa by end 2007 with initial capex - 325 ktpa – 2 new DRI kilns at Vanderbijlpark by 2H/07 - 660 ktpa – efficiency improvements by 2H/06 - 445 ktpa – Blast furnace D reline at Vanderbijlpark by 2H/06 - Expand sinter capacity at Vanderbijlpark by 1H
Slide 6: Overview of Capital Projects planned by Mittal Steel South Africa Limited (2006-2010)
Overview of Capital Projects planned by Mittal Steel South Africa Limited (2006 – 2010)
Slide 7: Distribution per Geographical area
Rand million per Area for New Projects Distribution per Geographical area Province Business Unit 2006 2007 2008 2009 2010 Total Vanderbijlpar 1,341. Gauteng k 5 1,666.1 1,430.5 783.2 344.2 5,565.5 Vereeniging 37.5 70.9 193.0 166.2 210.4 678.0 Pretoria 19.8 32.0 23.3 5.5 0.7 81.3 Kwazulu- Natal Newca
Slide 8: Vanderbijlpark Steel
Vanderbijlpark Steel An overview of the projects planned at Vanderbijlpark Steel is the following: • 30 Projects > R 20m • 17 Projects R10m to R20m • 200 Projects < R10m 8
Slide 9: Saldanha Steel
Saldanha Steel An overview of the projects planned at Saldanha Steel is the following: • 8 Projects > R20m • 5 Projects R10m to R 20m • 90 Projects < R10m 9
Slide 10: Newcastle Steel
Newcastle Steel An overview of the projects planned at Newcastle Steel is the following: • 14 Projects > R20m • 11 Projects R10m to R 20m • 80 Projects < R10m 10
Slide 11: Vereeniging Steel
Vereeniging Steel An overview of the projects planned at Vereeniging Steel is the following: • 6 Projects > R20m • 4 Projects R10m to R 20m • 110 Projects < R10m 11
Slide 12: Mittal Coke & Chemicals
Mittal Coke & Chemicals An overview of the projects planned at Mittal Coke & Chemicals is the following: • 2 Projects > R20m • 5 Projects R10m to R 20m • 96 Projects < R10m 12
Slide 13: Overview on new DRI Kilns 5 & 6 and additional sinter strand
Overview on 2 new DRI Kilns 5 & 6 and additional sinter strand
Slide 14: Kiln 5 & 6 Project Scope
Kiln 5 & 6 Project Scope The project is an integral part of our expansion strategy and consists of five main components: • Material Handling – Raw Materials Handling – Product Handling – Ash Handling • Kiln and Cooler Proper (2 off) – 80 m Kiln, 4.8 m diam – 50 m Cooler, 3.2 m diam – After Burner Ch
Slide 15: Kiln 5 & 6 Project Activities
Kiln 5 & 6 Project Activities • Design • Project Management of total or portions of project • Site establishment • Civil Construction • Electrical supply and control equipment • Various bought out items: fans, motors, gearboxes, pumps…. • Erection of buildings, kiln and coolers, Boilers, ESP • Trans
Slide 16: Sinter Upgrade Project Scope
Sinter Upgrade Project Scope This project is an integral part of the expansion strategy and consists of the following elements. • Raw Material Handling – Extend Fine Material Blending bed by 150 m – Install new Tippler – Install raw material buffer facility – New conveyors ca 2500 m • Sinter Plant p
Slide 17: Blast Furnace D Reline 2006
Blast Furnace D Reline 2006
Slide 18: Blast Furnace D Reline 2006 - Index
Blast Furnace D Reline 2006 Index • Objective of reline • Background • Overview of scope 18
Slide 19: Objective of Reline
Blast Furnace D Reline 2006 Objective of Reline • Campaign life of +20 years. • Minimum downtime - 90 days. • Production capacity – 5700tHM/day after sinter plant increased production. • An improved hot metal quality level and lower standard deviation with respect to hot metal silicon, sulphur and t
Slide 20: Background
Blast Furnace D Reline 2006 Background Blast Furnace D was relined in 1990 and since then it has received 3 intermediate repairs • In 1997 the refractory material in the hearth walls, the bosh, the belly of the furnace, and the ceramic burners in all hot blast stoves were replaced • In 2000 the refr
Slide 21: Background - Project Phases
Blast Furnace D Reline 2006 Background The project will be handled in the following phases: • Phase 0 Conceptual study – completed • Phase 1 Fixing of scope and budget - completed • Phase 2 Engineering and procurement - present • Phase 3 Reline – start 1 July 2006 • Phase 4 Project closure 21
Slide 22: Overview of Scope
Blast Furnace D Reline 2006 Overview of Scope Stockhouse and Furnace Charging Furnace Proper Casthouse Raw Gas System Electrical, Instrumentation & Control 22
Slide 23: Overview of Scope: Stockhouse and Furnace Charging
Blast Furnace D Reline 2006 Overview of Scope Stockhouse and Furnace Charging • Refurbish existing equipment • Increase coke storage capacity from 5 hours to 12 hours • Replace the redundant skip charging system with a conveyor charging system • Install an additional dust extraction system 23
Slide 24: Overview of Scope: Furnace Proper
Blast Furnace D Reline 2006 Overview of Scope Furnace Proper • Replace the complete furnace shell as the existing bottom plate is cracked • Replaced the furnace hearth refractory material • Install a copper and cast iron staves cooling system • Install a closed cooled water system • Replace damaged
Slide 25: Overview of Scope: Casthouse
Blast Furnace D Reline 2006 Overview of Scope Casthouse • Increase the length of the iron troughs • The cast house floor will be leveled for mobile access • Install a ramp from ground level to the cast house floor • Install air cooled troughs • Install a new tuyere platform • Install new slag runner
Slide 26: Overview of Scope: Raw Gas System
Blast Furnace D Reline 2006 Overview of Scope Raw Gas System • Replace the primary dust catcher internal trumpet • Replace the dust discharge equipment • Refurbish the existing gas scrubber • Install a new cooling tower 26
Slide 27: Overview of Scope: Electrical, Instrumentation & Control
Blast Furnace D Reline 2006 Overview of Scope Electrical, Instrumentation & Control • Supply new electrical system for all new equipment • Refurbish existing electrical systems 27
Slide 28: BEE and Areas of Concern
BEE and Areas of Concern
Slide 29: BEE Policy
BEE Policy • Realising that Black Economic Empowerment (BEE) are the cornerstone of a strong and sustainable economy, Mittal Steel South Africa Ltd commits itself to actively support and contribute to the development and growth of BEE’s in the Republic of South Africa. • We believe that the active d
Slide 30: The objectives of the BEE policy
The objectives of the BEE policy • To facilitate access of BEE Vendors, to Mittal Steel South Africa Ltd procurement activities • To contribute to development and growth of BEE • To establish, monitor and report progress against annual targets – for goods/services procured • To encourage major non-B
Slide 31: BEE Management
BEE Management Preferential treatment of BEE vendors: In the process of awarding tenders by Mittal Steel South Africa Ltd, preference shall be given to BEE Vendors who meet all the tender requirements. Mittal Steel South Africa Ltd spend R1,023 Billion on BEE suppliers in 2004 Projected spend on BEE
Slide 32: Areas of Concern
Areas of Concern 1. General skills shortage in the country due to Engineers and artisans seeking international employment during the last 10 years 2. Infrastructure and other expansion projects in South Africa sucking up most of the Engineering, Project Management and Manufacturing Capacity 3. Deliv
Mittal Steel South Africa — Investor Day (November 2005) on 6ix