Struggling steel and mining group Arrium is making fresh cost cuts and shortlisting parties to take a close look at a business it is looking to sell.

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The company announced a strategic review in August in an effort to reduce debt, after being hit hard by the plunge in iron ore and steel prices.

Arrium made a full year loss of $1.9 billion after being forced to take asset impairments and restructuring costs in its 2014/15 accounts.

It said on Thursday it had received strong interest for its Moly-Cop business, and is continuing to consider other options as it looks to reduce its debt pile of an estimated $1.7 billion.

The Moly-Cop mining consumables business is the world’s largest supplier of grinding media, used for crushing and grinding in the mining and construction industries.

Arrium, formerly known as OneSteel, acquired the Moly-Cop and AltaSteel businesses, which now make up its mining consumables unit, in 2010 for $932 million.

The company also announced it is working to cut $100 million a year in costs at its Whyalla Steelworks in South Australia, within two years.

Arrium said it has been engaging with employees, unions and suppliers at the plant, as well as the local and federal governments regarding the challenging external environment.

These cuts are in addition to the overall cost reduction target of $60 million that Arrium announced in August.

An update on cost reduction targets and progress will be provided in November.

Earlier this week, the company said it was working with the South Australian government to find ways to expand its wholly-owned Whyalla port and to throw open the facilities to outside users.

Arrium reiterated that it continues to be in compliance with its banking covenants, and that the next significant maturity of debt will fall due in the 2018 financial year.

Arrium shares gained 0.2 cents to 8.9 cents.

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