Exciting new plan for Gladstone's $20m steel plant
THE owners behind the proposed $20 million Gladstone Steel Project have renewed their efforts to fund their steel-making pilot plant.
Director Paul Sundstrom has outlined new plans to gain government investment.
The Gladstone Steel Project aims to construct a $20 million steel mill plant in Gladstone used to extract iron ore from the Red Mud Dam to be processed into steel.
Directors of the project are keen to approach the government for funding, including the $30 million Bowen Basin Jobs Package.
"We are going to actively follow up with (the Bowen Basin Jobs Package committee) in an endeavour to convince them that our steel mill project warrants the allocation of some of this money," Mr Sundstrom wrote in his update.
MAJOR PROJECT IN THE PIPELINE |
MAY. 9, 2016 | UPDATE: Pollies in push for QAL red mud dam plan
APR. 30, 2016 | Red mud key to launching Gladstone steel project
While the project has experienced financial troubles, directors are still optimistic about the construction of the plant in Gladstone.
"The prospects of achieving a steel mill are still good, although it will probably be a smaller "boutique mill."
Gladstone MP Glenn Butcher said the project, which he supports, would be built on a parcel of land in Gladstone's State Development Area near Yarwun.
"We've extended the agreement on the land tenure so they can continue to move forward with that project," Mr Butcher said.
"We're doing everything we can to facilitate it ... it's up to the people involved to get the funding they need."
It's expected the plant would create "hundreds of jobs".
The steel mill is a downsized proposal compared to what was planned back in 2008, which was a $5 billion full scale plant.
QAL has given Gladstone Steel Project a sample of the red mud for investigating purposes.
"We are always interested in exploring new ways to re-use and recycle the bi-products from this process," QAL general manager Mike Dunstan said.
"We look forward to investigating any mutual benefits that may be presented from the Gladstone Steel Project."
Director Mr Sundstrom was contacted for comment but could not be reached.