Boulder Steel Moves Another Step Closer to Queensland Steel Mill

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Researched by Industrial Info Resources Australia (Perth, Australia)--Boulder Steel Limited (ASX:BGD) progressed another step closer to constructing a steel mill in Gladstone, Queensland, potentially within the next two years. The recent environmental impact statement was approved by the Queensland government in May 2013; however, the company continues to work on the federal approval.

The environmental impact statement was submitted for review in late 2012 and was approved in May 2013. The company already has encountered several delays in the lead-up to approval. Despite any such setbacks, the price of the resource commodity has been a major variable in the projects' progression. Although potentially negative for some industries, a decline in commodity prices could give Boulder Steel the advantage it needs.

The company is attempting to utilize the services and labour of the local Queensland companies around Gladstone and the surrounding communities, in an effort to keep jobs local and take advantage of the available skills.

For project delivery, Boulder Steel is taking a different approach with an outsourced governing role of capability and company information by the Gladstone Engineering Alliance (GEA). The alliance will help in the formation of consortiums for the package work available. The company is approaching the project with a vertical integration objective and with the help of the GEA, Boulder steel will assign packages in order to install and commission the equipment.

Once the company has financial approval, Boulder will outsource the modular components to be constructed in China, where it can then be shipped for modular installation via the local companies coordinated by GEA.

Boulder Steel will be utilising companies with experience in the technology, and the technology itself is historically proven with two blast furnaces that will be used to processing plant. Other infrastructure that will be required is the construction of rail and port facilities.

This project is a fantastic use of local and national resources, including the feedstock, supply fuel, the power plant used to generate the mill's power requirements, and the iron ore used as a primary steel making product, all of which are in good supply throughout Australia.

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