The Australian reported that BlueScope Steel has been granted an AUD 100 million lifeline under Labor's AUD 300 million Steel Transformation Plan.

Industry Minister Mr Greg Combet said that a third of the funding from the steel industry assistance package would go to BlueScope, recognizing the significant challenges facing the sector.

Earlier this month, BlueScope MD Mr Paul O'Malley said that the company would apply for an early advance of AUD 100 million in payments allocated to it.

BlueScope welcomed the announcement and said it expected to receive the AUD 100 million early in the new year.

Mr O'Malley said that "The advance payment will assist BlueScope Steel to undertake activities that enhance the competitiveness and economic sustainability of the company's Australian operations. The proceeds of the STP advance, together with the company's just completed capital-raising, ongoing restructuring and potential asset realization opportunities will all help support the company's return to profitability and growth."

The STP was one of two Labor initiatives that failed to get broad support from the multi party climate change committee and will be funded through the budget.

It is designed to help the industry, struggling under a high dollar, weak domestic demand and high raw material prices, cope with any additional pressures imposed by the Gillard government's AUD 23 a tonne carbon tax.

(Sourced from www.theaustralian.com.au)