Arrium chair departing after 14 years

Industry veteran Peter Smedley will step down as Arrium's chairman after 14 years in the role.

Australian veteran businessman Peter Smedley is stepping down as chairman of Arrium after more than a decade.

Mr Smedley and fellow director Dean Pritchard would not stand for re-election in November next year, he told the company's annual general meeting.

The departure of the two directors after 14 years means Colin Galbraith will be the only board member left since the company was spun out of BHP as the steelmaker OneSteel in 2000.

It was time for board succession, Mr Smedley told shareholders, now that the company had completed major growth projects and acquisitions of mining consumables and iron ore assets.

Arrium now makes more money out of iron ore mining and mining consumables - products used for minerals processing - after diversifying to reduce its exposure to steelmaking.

Chief executive Andrew Roberts, who took on the role in July, said the mining and consumables businesses had positive outlooks, but steelmaking faced a weak construction market.

Arrium shares climbed 12 cents, or 7.9 per cent, to $1.64, its highest level since August 2011.

"In steel, the external environment remains difficult but we are continuing to do well with what we can control, and we are encouraged by a recent lift in market confidence and quote activity," he said.

It remains Australia's largest steel distributor and steelmaking is its biggest employer, despite more than 2000 job losses in the last two years.

Arrium recently sold its steel sheet and oil business to BlueScope Steel for $23 million, and expects to generate $200 to $250 million million in steel asset sales this year as it focuses on paying down $2 billion-plus in debt.

The company also said it expects to produce 12 million tonnes of iron ore this year after producing a record 3.3 million tonnes for the September quarter.

Stronger iron ore prices are helping earnings.


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Source: AAP


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