J. Lysaght will get $71.2m from Broken Hill

Press, Volume CXV, Issue 33803, 27 March 1975, Page 26

J. Lysaght will get $71.2m from Broken Hill

(N.Z. Press Association—Copyright)

SYDNEY. The Broken Hill Proprietary Company, Ltd, is to pay calls totalling 571.2 m during 1976 on its 17m contributing shares in John Lysaght (Australia), Ltd.

It is likely,, however, that inflation will result in a substantial escalation from the original cost estimates of the hot strip mill. These were about s9om when the Westernport project was first planned, but were restated as “in excess of $100m” in 1971. The estimate had risen to sl2otn by the middle of last year. The funds are to provide part of the finance required for Lysaght’s hotstrip mill at Westernport, Victoria, which is expected to be commissioned late in 1977. A B.H.P. spokesman said

that payment of the calls had been allowed for in B.H.P.’s financial planning for some time, and would be met from the company’s cash reserves.

The hot strip mill will mark the second stage of the huge Westernport plant. It will initially be fed by slabs from B.H.P.’s Port Kembla operations. The first stage at Westernport is the No 2 cold strip plant, which was commissioned during 1973 within its original authorised capital cost of s92m.