After Australia's largest steel-maker BlueScope Steel announced to shut-down its number six blast furnace at Port Kembla and close its Western Port hot strip mill, China's second-largest steel manufacturer Ansteel has decided to abandon it original plans to build a huge steel mill in Western Australia due to the high manufacturing costs in Australia.
Ansteel has shipped iron ore from Karara back to its steel mills in China, rather than process it into steel products in Australia because manufacturing costs in Australia are comparatively high.
Ansteel might need a further US$600 million in equity towards the Karara development, bringing the total cost to US$2.57 billion