Boulder confident in Gladstone
STEEL industry sources believe building steel mills in Australia is generally found to be uneconomic.
They say the high costs and a potential carbon tax means steel mills are unlikely to stack up.
The reports have raised concerns in Gladstone as to the viability of the Boulder Steel Project at the Aldoga Precinct.
Boulder Steel General Manager Carl Moser said Boulder Steel disagrees with the comments since their internal costings show that the plant will still be a low cost producer by global standards.
“The steel project is on track and the company is confident that the project will qualify for exemptions in accordance with the Emissions-Intensive Trade-Exposed (EITE) assistance program introduced by the Rudd government,” Mr Moser said.
“In this case the impact of a carbon tax on Boulder’s operations would be minimal.”
Gladstone Economic and Industry Development Board chief executive Dr Ken King said new project development for the industry is a challenge and any proposed carbon tax would need to be factored in to the complex economic equation by industry.
“Global economics will continue to vary and individual corporate decisions both in Australia and overseas will reflect that,” Dr King said.
“The Gladstone region will continue to be a viable option for a range of large scale industrial developments.”