OREANDA-NEWS. January 3, 2013. The 16th meeting of the 14th Board of Directors of China Steel Corporation (CSC) was held on December 27, 2012.

Major items of the agenda adopted were:

1.Revamp of pre-programmed automatic and electrical control system for No. 2 hot strip mill of Rolling Mill Department II-Hot Rolled Products No.2 hot strip mill of Rolling Mill Department II has been in operation for 16 years. It is estimated to spend NTUSD 2,270 million to revamp the pre-programmed automatic and electrical control system for No.2 hot strip mill from January 2013 to December 2017, a five-year project, in order to reduce the risk of breakdown of equipment, as well as promote processing capacity of the production line to develop new steel grades. The benefits of this project include reducing the rate of loss by delay, improving equipment properties and functions, and reducing CO2 emission by total of 2,988.56 metric tons per year through power saving and low-temperature rolling.

2. Raise capital of CSC's wholly-owned subsidiary “CSC Steel Australia Holdings Pty Ltd” by USD 270 million to invest in mineral assets.

3. Consolidation and merger of Horng Yih Investment Corporation, Long Yuan Fa Investment Corporation, and Goang Yaw Investment Corporation According to the investment agreement when CSC purchased the stocks of Chung Hung Steel Corporation (original name was Yieh Loong Enterprise Co., Ltd.) in February 2000, CSC also bought Horng Yih Investment Corporation, Long Yuan Fa Investment Corporation, and Goang Yaw Investment Corporation, which held the stocks of Chung Hung Steel. In order to simplify CSC Group’s financial statements, CSC decides to consolidate and merge the three bought-in corporations. The reference date for the consolidation and merger will be on January 1, 2013.

4. Issuance of domestic corporate bonds amounted to NTUSD 20,000 million CSC will issue domestic corporate bonds at suitable time before the end of 2013 in order to replenish long-term working capital. Total amount of issuance will be within NTUSD 20,000 million.