Administrators proceed with dual-track Arrium sale

Image: Kelly Barnes/The Australian

Arrium administrator KordaMentha will hold parallel sales of the Arrium’s mining consumables and its steel, mining and ports businesses, with operations at the Whyalla steelworks “stabilised”.

The Australian reports the administrators have finished a review of the group, and had identified “significant progress” in savings at the steelworks.

“We don’t need extra funds right now,” Mark Korda, a principal at KordaMentha, told The Australian Financial Review.

“The business has been stabilised.”

Senator Nick Xenophon of the Nick Xenophon Team has an 11-point rescue plan for the Whyalla steelworks, which it will lobby the new government over, at the top of which is an injection of funds for the plant.

The SA senator could have significant clout if a minority government emerges, with counting of votes for Saturday’s federal election continuing today.

Korda also told The AFR that sales of Arrium Australia – including the group’s Whyalla steelworks, mining operations and steel distribution business – would be run “in parallel” with the sale of the Moly-Cop grinding media business.

The Arrium Australia sale is scheduled to begin mid-this month.

Meanwhile, The AFR’s Street Talk column reports that Moly-Cop’s chief executive officer and chief financial officer fronted potential investors in Hong Kong yesterday. The company is expected to pitch the business to London investors tomorrow and return to Australia to do the same with fund managers in Sydney and Melbourne later in the week.

The Arrium group went into administration in April, owing $4 billion in debts.