Chance of continue operation?, page-33

The problem with Whyalla steel was the apparent cross subsidization.
In a falling steel market and sales only dropped $30m from Whyalla steel the accounts claimed from one year to the next.
meaning Whyalla was supplying steel into the ARRIUM system at $800 plus a ton at 1.1mt.
This was when real cuts should have come into force driving costs down.
4-600Kt of billets at twice what ARC furnaces were producing them at from scrap.
When IO was high,then Whyalla should have been making huge profits with cheap IO feed,which it wasn't.
There are only two choices for Whyalla.
1/Make steel as cheap as possible.
2/Don't make steel

The compressible steel costs are its inputs.
You shouldn't get much cheaper than ore at mined cost pumped onto site for next to no transport cost.
They have done the cheap coal blends,the cheapened cost pellets with the upgrade.
That just leaves contracts outside and inside and labour.
Those inside the mill must consider changing restrictive work practices and how many employees are actually needed and how things can be handled cheaper.
ARI talked about $200m savings in total needed,but I guess double that is what is needed to make a truly profitable site worth keeping open with future investment guaranteed.

DYOR + DYODD Turnaround may be right.Whyalla and MBR and SI not addressing the cost issues has placed ARI in VA.