An unjust and disgraceful administration in Australia corporation history is in the making!

We request that you get involved in this important matter with the qualifier that whatever happens with Arrium will be remembered for generations. Returning the company back to its shareholders is the only just decision rather than selling it off in pieces to non-vested parties only to create uncertainties to the workers and all other stakeholders.

Arrium Steel (previously known as OneSteel) with local steelmaking heritage dated over 100 years ago, together with the Middleback Ranges iron ore mining, ports and distribution network are the strategic assets that empower Australia economy activities, collectively help building the nation and have provided employments to large numbers of workers with moderate skills, providing them with stable jobs and good benefits. The overall Australian steel industry employs 90,000 workers in 2014-15. Despite the manufacturing industry in Australia has declined from 30% of GDP in the 1960s to 6.8% of GDP in 2014, manufacturing products such as structural and reinforced steel continued to represent a core source of economic prosperity for Australia. Without these vital businesses, roads, rails, building construction and many infrastructure initiatives could not have been developed as they are today. It's a national imperative to keep the steel manufacturing industry strong, sustainable and in Australian hands.

Arrium is the 4th lowest cost iron ore producer in the world + with its ports, rails, integrated steel manufacturing and world class distribution makes it a remarkable long term sustainable Australian business. Granted, it had a heavy debt burden albeit with the recent sale of Moly Cop this has now been rectified. As a reminder, liquidators only do one thing well “liquidate” with absolutely no consideration whatsoever for medium and/or long term legacy nor for any consideration to any other stakeholders other than their clients and their own fee generation situation. We simply are absolutely convinced that all stakeholders can be made 100% whole and Australia will be a better place afterwards when returned to shareholders than the current process conducted by a liquidator.

It’s important for us to clarify to you what has changed since administration!

1) - Moly-Cop has now been sold for AUD 1.6 billion to reduce debt to a manageable level,

2) - Iron Ore Division

• Iron Ore prices have been more than doubled since its lows December last year and it is now trading at multi-years high at USD83,
• The announced washing plant technology improvement with loan supported by the federal government will add another $50 million per year over the next 5 years by improving the grade of iron ore mined,
• The expiration of higher rate shipping contracts in September 2016 will reduce the mining cost for around AUD 5 per ton. Which will add another AUD 50 million per year to the bottom-line,
• Partnership with CDE Mining to process and convert 17 million tons of low grade iron ore fines in waste dumps into saleable product,

3) - Steel Division

• Steel prices have surged over 50% since its lows,
• Anti-dumping policies Australian federal government announced few months ago will further support the recovery of steel prices over the longer term horizon,
• Potential deals with Oz-Mineral and others in the pipeline regarding the Whyalla port facilities,

 In addition to the fact that the company is now in very good shape, if the company continues to be liquidated the negative consequences include:

• All the unsecured creditors will only get back between 50 to 70 cents in a dollar of unsecured debts as reported,
• Shareholders including many employees will get nothing and the accumulated tax losses of the company will be lost forever,
• If the buyer is a foreign entity, the Arrium Australia steel and mining businesses will operate as subsidiaries of the foreign company. Foreign company generally has an appetite to maximize profits by shifting some parts of the business offshore including back office, customer services and technology causing more jobs losses in Australia.

The purpose of voluntary administration is to attempt to turn an essentially insolvent company around to maximise its chances of continuing. This is now the best opportunity for all stakeholders putting their self-interest aside to work together to return the company back to its legitimate owners and to keep the national important assets in Australian hands.

From Arrium Shareholders United (ASU)

ASU Website: http://arrium-asu.wixsite.com/fight-for-justice

ASU Email: arrium.shareholders.united@gmail.com