BROADENING OUR HORIZONS - Arrium

OneSteel Annual Report 2011Directors’ Report48Your Directors submit their report for theyear ended 30 June 2011.DirectorsThe following persons were Directors ofOneSteel Limited during the whole of thefinancial year and up to the date of thereport unless stated otherwise:L G Cox (retired 15 November 2010)R B DavisE J Doyle (retired 15 November 2010)C R Galbraith, AMP G NankervisG J PlummerD A PritchardP J SmedleyG J SmorgonR Warnock (appointed 1 September 2010).Details of the qualifications, experience andresponsibilities of the Directors are set outon pages 42–43 of the Annual Report.Principal activitiesThe principal activities of the OneSteelLimited Group (“OneSteel Group” or“OneSteel”) during the financial year werethe mining and supply of steelmakingraw materials to steel mills operatedin Australia and overseas; recycling offerrous and non-ferrous scrap metal; andmanufacture and distribution of steellong products.The OneSteel Group manufactures anddistributes a wide range of productsincluding structural, rail, rod, bar, wireand pipe and tube products. In addition,the OneSteel Group distributes sheet andcoil, piping systems, plate and aluminiumproducts. OneSteel Limited owns 50.3%of the ordinary shares of Steel & TubeHoldings Limited, a steel distributioncompany listed in New Zealand.On 31 December 2010, OneSteel completedthe acquisition of the Moly-Cop andAltaSteel businesses from Anglo Americanplc (together the “Moly-Cop Group”).The Moly-Cop Group is based in theAmericas and consists of grinding mediaand steel products businesses, focusedon the high growth mining consumablessector. The acquired businesses, togetherwith OneSteel’s existing grinding mediaproduction facilities in Australia, the UnitedStates and Indonesia, provide OneSteelwith global scale in the growing grindingmedia market. The acquisition alsoprovides OneSteel with strong positions innew and attractive regions, and leveragesOneSteel’s core capabilities includingproduct, technical and customer knowledgein mining consumables.Review of operationsA review of the operations of the OneSteelGroup during the financial year and theresults of those operations is contained inpages 16 to 28 of the Annual Report.Net profit after income tax attributable tomembers of OneSteel Limited as parententity for the financial year was $230.3million (2010: $258.4 million), with earningsper share of 17.33 cents (2010: 19.51 cents).DividendsDividends paid or declared by OneSteel Limited (“the Company”) since the end of theprevious financial year were as follows:2011 final dividend4.0 cents per ordinary share payable on 13 October 2011,unfranked on fully paid ordinary shares 53.52011 interim dividend6.0 cents per ordinary share paid on 14 April 2011,unfranked on fully paid ordinary shares 80.12010 final dividend6.0 cents per ordinary share paid on 14 October 2010,unfranked on fully paid ordinary shares 79.9Significant changes in the state of affairsOther than the acquisition of the Moly-Cop Group on 31 December 2010, there were nosignificant changes in the state of affairs of the OneSteel Group that occurred during thefinancial year. Commentary on the overall state of affairs of the OneSteel Group is set outon pages 2 to 39 of the Annual Report.Environmental regulation and performanceThe OneSteel Group is subject to significant environmental regulation in respect ofits mining and manufacturing activities. Environmental performance obligations aremonitored by management and the Board of Directors and are periodically subjectedto internal, independent external and government agency audits and site inspections.The Environment Report is set out on pages 36–37 of the Annual Report. OneSteel’sSustainability Report is available on www.onesteel.com/sustainability.Directors’ meetingsThe number of Directors’ meetings held, including meetings of committees of Directors,and number of meetings attended by each of the Directors during the financial year arelisted below. Details of the committees are set out on pages 44-45 of the Annual Report.DirectorsBoard ofDirectors 2Audit & Governance &Compliance NominationsCommittee CommitteeHumanResourcesCommitteeOccupational,Health,Safety &EnvironmentCommittee$mOperationalRiskCommitteeNumber of16 4 2 3 4 1meetings held 1L G Cox 4 7 1 — — — —R B Davis 15 4 — 2 4 1E J Doyle 4 8 1 2 — 1 —C R Galbraith, AM 15 4 2 2 — —P G Nankervis 16 4 — 2 — 1G J Plummer 16 4 2 3 4 1D A Pritchard 16 — — 3 4 1P J Smedley 16 2 2 3 — 1G J Smorgon 16 — — 3 4 1R Warnock 3 13 3 — 2 4 —1 Attendance at Board committee meetings during the year includes attendance of Directorswho are not members of that committee.2 Excludes OneSteel Limited Board sub-committee meetings and written resolutions.3 Appointed 1 September 2010.4 Retired 15 November 2010.Company SecretaryInformation on the qualifications and experience of the Company Secretary is set out onpage 42 of the Annual Report.No officers are former auditorsNo officer of the OneSteel Group has been a partner of an audit firm or a director of anaudit company that is or was an auditor of any entity in the OneSteel Group during theyear ended 30 June 2011.