Arrium is selling its Wire Ropes business in Newcastle to a Danish firm for $90 million.<\/p>\n
The business supplies drag line and shovel ropes to miners and has been operating for more than 90 years.<\/p>\n
Arrium\u2019s CEO Andrew Roberts said while Wire Ropes is a quality outfit, it lies outside the company\u2019s strategic focus for future growth in mining consumables.<\/p>\n
“Our growth in mining consumables is centred on the global mineral processing industry, including capturing at least our share of the expected strong growth in grinding media demand,” Roberts said.<\/p>\n
“Today’s announcement is consistent with our focus on recuding debt, and builds on our good progress with asset divestments.”<\/p>\n
Arrium\u2019s asset divestment proceeds for FY2015 will increase to at least $150 million following the completion of the sale in March.<\/p>\n
New owner Bekeart is expected to offer all of Wire Rope\u2019s 100 workers ongoing employment.<\/p>\n
Last month, Arrium announced it will be recording an asset impairment charge of $1.3 billion.<\/p>\n
The writedown relates to Arrium\u2019s iron ore mining and steel businesses and includes an impairment of $1.7 billion in the company primarily related to the impact of low iron ore prices and the mothballing of Southern Iron mine, and $130 million in steel and recycling.<\/p>\n
The company is targeting a $200 million reduction in its capital expenditure as well as a redesign of its mining business in order to deal with the mining downturn. <\/p>\n","protected":false},"excerpt":{"rendered":"