Tuesday, January 31, 2012
Climate Change Minister Greg Combet announced today that the advance payment had been finalised under the government's $300 million Steel Transformation Plan (STP).
OneSteel expects to receive the payment within 30 days and it will be recorded as income in the company's financial statements for fiscal 2012.
Labor finalised a similar $100 million advance to BlueScope Steel in December.
"The assistance provided to the Australian steel manufacturers will help OneSteel and BlueScope to adapt and modify their business models to ensure their long-term sustainability in a low carbon economy," Mr Combet said in a statement.
OneSteel chief executive Geoff Plummer told the stock exchange the company was "pleased with the government's interest in steel manufacturing in Australia" and welcomed the funds.
The STP, announced in July 2011, was intended to help steel makers adjust to the government's carbon tax, which will start with a fixed pollution price of $23 a tonne.
But the advance payments will also help OneSteel and BlueScope deal with the high Australian dollar, weak domestic demand and excess supply in international steel markers, Mr Combet said.
Labor's $300 million STP was passed by the Parliament in November alongside the 18 carbon tax bills.
OneSteel Gets $64m Ahead of CarbonTax
Posted by Joseph Gale at 11:43 PM