Arrium Appoints Voluntary Administrators

The video discusses Sarim's inability to compete in the global steel market, leading to $1.5 billion in debt. The government accuses Sarim of poor management, as their stock value plummeted. A $900 million recapitalization plan was rejected by Australian banks, leading Sarim into voluntary administration. Despite challenges, Sarim's Molly cop business remains profitable. The steelmaking plant in Whyalla faces potential closure, threatening local employment. The government plans to assist affected workers.

What major challenge is Areum facing in the global market?

• High demand for steel

• Global steel glut

• Lack of skilled labor

• Rising steel prices

What was the outcome of the $900 million recapitalization plan proposed by Areum's US backers?

• It was accepted by Australian banks

• It was rejected by Australian banks

• It led to Areum's stock price increase

• It resulted in Areum's debt reduction

Which part of Areum's business is currently profitable?

• None of the above

• Iron ore business

• Steelmaking business

• Molly Cop division

What impact could the closure of the steelmaking plant in Whyalla have?

• Increase in local employment

• No significant impact

• Boost in local economy

• Devastating impact on the town

How many people are employed at the steelmaking plant in Whyalla?

• 4000

• 3000

• 2000

• 1000