Hopes Malaysian investors will rescue $5 billion Gladstone steel project

There is still hope that the project to create a major, $5 billion steel project in Gladstone will get off the ground.

The Gladstone Observer reports that investors from Malaysia are set to visit to investigate the project early in November.

Director Ross Johnson and CEO David Simpson told Gladstone Engineering Alliance Major Industry Conference that construction would ideally begin in 2016.

"It's crunch time for us. You may never see us again after Christmas or you'll see us all the time,” The Observer reports Simpson as saying.

"Boulder is the name that many people will be familiar… it's just going to float off into the distance and do something else not involved in the project."

It was said that construction would create 1,800 jobs and see a major plant, able to produce 5 million tonnes a year of bloom and billet steel, created.

The major shareholder for the project is the Boulder Steel Rescue Group, now known as Gladstone Steel, which took charge of the project earlier this year.

The Gladstone Steel Project and Boulder Steel both went into administration in July 2013. Creditors approved a joint venture proposal between Otsana and BSRG in February.

Image: Reuters

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