Australia's BHP denies reports of move to Indonesia
Australia's BHP denies reports of move to Indonesia
SYDNEY (AFP): The chief of Broken Hill Proprietary Co. Ltd.'s steel division yesterday denied reports that the resource giant was considering moving its Australian steel operations to Indonesia.
"The most important point that I want to make is that in no way are we looking at steel making anywhere overseas in lieu of steel making in Australia," BHP Steel general manager Ron MacNeilly said.
"It's just not on the agenda at all that any investments would be at the jeopardy of Australian investments," he told national radio.
McNeilly's comments came in response to Indonesian reports, quoted in newspapers here, that BHP Steel was about to secure a 25 percent stake in PT Krakatau Steel, ahead of its US$650 million float.
"Australians face sack but BHP looks at making steel in Indonesia," The Australian newspaper said, linking the deal with BHP's unpopular decision to close down its historic Newcastle steelworks.
BHP outraged unions two months ago when it announced it would close Australia's oldest steelworks by the end of 1999 with the loss of about 2,000 jobs.
The assistant secretary of the Australian Workers Union Newcastle branch, Kevin Maher, said he was "wounded and disgusted but not surprised" at BHP's reported interest in the Indonesian investment.
"(BHP) are not interested in making steel in Australia because it is too hard and it's clear that the future of steelmaking as far as it is concerned is overseas, particularly in Asia," he told the paper.
Prime Minister John Howard is to visit the depressed industrial city Wednesday for the first time since BHP announced the bad news.
BHP has denied it agreed to buy a stake in the government- owned Krakatau but admitted it had been involved in discussions with the group about its planned part-privatization.
"There is certainly no agreement between BHP and Krakatau to take up any position in their proposed float," BHP Steel division spokesman John Devers said.
But he added that BHP was aware of the Indonesian government's decision to float a portion of Krakatau and that it did have discussions with Krakatau from time to time.
BHP has a long history with Krakatau through their shareholdings in a Cilegon metalic coating and painting plant.