Kingstream's managing director, Nick Zuks, said financial arrangements would be in place by Christmas and the deal closed during the first quarter of 2001.

"We had a duty to complete this project even though we had a number of delays," he said.

"The financial collapse in Asia and the ensuing effect on steel price and the decision to move the plant to Oakajee obviously slowed things down.

"But now the project has good international support and the approval of financers, so the project will move along quite quickly."

Chase Securities Inc and Chase Securities Australia, a wholly owned subsidiary of global bank Chase Manhattan, has agreed to assist Kingstream to raise up to US$2 billion for the 2.6 million tonnes a year steel slab plant.

Zuks said Chase might finance the project using its own funds but alternative options could include Kingstream seeking capital from Europe's bonds market.

Kingstream also announced it would place another 25 million 20c shares to clients of DJ Carmichael and Queensland shareholder Protax Nominees.

The placement will raise $5 million for general working capital.

"Everything is going very nicely and in a timely fashion," Zuks said. "We decided we would not appoint a bank until we were ready, and now that has been done the project will move along quickly."

The company has already signed an engineering procurement and construction deal with Germany's SMS Demag AG and Ferrostaal AG.

It also has an insurance arrangement in place with Swiss insurance company Winterthur International that will cover commodity fluctuations.

"We wanted to minimise risk for our financers, particularly after the South-East Asian crisis," Zuks said.

"The agreement gives the company access to good market prices at all times, rather than being locked in to a take or pay project."

Kingstream's shares, which had been suspended since Friday pending both announcements, had dropped from 27.5c to 24c at the time of writing.