Boulder Steel is currently looking at developing a Pig Iron Production Facility
in Queensland, Australia.

Background
The pig iron markets are strong and demand is expected to continue to grow worldwide. 

The project will replace Australia's imports of pig iron and supply the growing Pacific Rim market.  There are currently no pig iron producers in Australia.

Substantial benefits will be provided to both domestic and regional customers by significantly reducing their inventory and lead times for product delivery.

Location
The location in Gladstone, Queensland offers good infrastructure, competitive raw material supplies and minimal transport costs to market, which will, among other things, result in the project being a low cost and efficient producer.

Latest Developments
Following the announcement on 30 June 2008 to move the expanded Australian Project to a new location near to Gladstone Queensland the following matters have progressed:

A site selection study was undertaken by the company’s consulting engineers. Sites in the Aldoga and Targinie Precincts near Gladstone were studied to consider aspects including availability of services, transport, port, hydrology, contours, air quality and noise. The report recommended an appropriate 400hec site within the Gladstone State Development Area.

During September the Company's Board of Directors approved commencement of the EIS. The company’s consulting engineering firm proposal was accepted and work started. The draft Initial Advice Statement has been lodged with the Queensland Coordinator-General.

Negotiations have commenced to secure major utility services and these negotiations are proceeding to plan.

The plant facilities model indicates that a co-generation power station should be considered as the plant's off-gasses are sufficient to supply all the electricity requirements with surplus capacity available for sale to the grid. This will reduce the 'carbon footprint' of the plant.

Discussions have also commenced with the major suppliers of iron ore, coal and fluxes. Plant specifications and standards are being prepared in order to obtain proposals and pricing from suppliers.

Discussions have commenced with the Gladstone Port Corporation as a new berth will need to be constructed for the discharge of iron ore.

Whilst there have been significant changes to the costs of raw materials and to the prices for the semi-finished products that the project will produce, updates of the feasibility studies indicate that the project will provide robust returns to the company. Ongoing and more detailed review of project feasibility will be undertaken regularly.