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Document date: Tue 19 Jan 1999
Published: Tue 19 Jan 1999 00:00:00
Document No: 156935
Document part: A
Market Flag: Y
Classification:
HOMEX - Perth

+++++++++++++++++++++++++
The Directors of Boulder Group NL (BGD) and Australian Overseas
Resources Limited (AOV) are pleased to announce that NSW Premier Bob
Carr today will unveil plans to build a A$234million stainless and
specialty steel mini mill in Newcastle with Boulder Group NL and
Australian Overseas Resources Limited as joint venture partners in
the project.

The planned mini mill will produce stainless and specialty steels as
a leading global supplier of steel plant equipment, will employ a
continuous casting-to- rolling process, which lowers operating costs
over conventional mini mills via reduced billet storage and manpower
requirements, minimal energy inputs and higher output rates. The
plant also enables the joint venture to make rapid changes to the
product mix and specification to meet changing market demands.

The Directors of BGD and AOV are convinced that the Newcastle site
will provide a strong competitive advantage for the joint venture,
with very low power and reasonable land costs, a port near the mill,
excellent infrastructure and a highly skilled workforce.

The joint venture has assembled a project team of internationally
recognised experts in stainless/ specialty steel making, equipment
manufacturing and stainless/ specialty steel marketing.

Mr, Kym Godson, former CEO of Atlas Steels will be appointed Managing
Director of the operating company in Newcastle. Mr. Godson has had
many years of experience in stainless/ specialty steel making and
marketing, both in Australia and internationally.

Mr. Joachim von Schnakenburg, an engineer from Germany, who has held
senior positions in European steel and plant manufacturing companies
will be the Chief Technical Adviser to the joint venture partners.

Last year world consumption of stainless steel long product was three
million tonnes and is growing at an annual rate of 4%.

Specialty steels are highly sought after by automobile and aircraft
manufacturers because of their high strength, durability and low
weight specifications. Given the high level of international demand
for specialty and stainless steels, the joint venture has earmarked
60% of the Newcastle mill's production for export.

Revenues are anticipated to be in the order of A$324m p.a.

The joint venture will also focus on the China market which for
stainless steels alone is forecast to continue to grow at 12.3% p.a.
over the next decade. The joint venture is currently securing offtake
agreements with several companies and investors, among them one of
Europe's leading steel trading houses.

The NSW State Government has also endorsed the Newcastle Steel River
Mini Mill Project, which would help develop the local Hunter Valley
economy and generate 150 jobs in direct employment and create a
further 1,000 jobs in downstream employment. In addition, the State
Government has agreed to contribute A$50,000 towards the feasibility
study on a matching basis with the joint venture, provide major
project assistance through the Premier's Department and facilitate an
efficient and integrated planning approval process. In turn, the
joint venture will provide to the Government regular reports covering
environmental, commercial and technical issues.