The formal sale process for the Whyalla Steelworks and its associated mining operations commenced last week, following early interest from a number of international steelmakers and consortia focused on low-emission production.
Administrator KordaMentha and sale advisors 333 Capital are leading the independent process, which comes after the South Australian Government placed the steelworks into administration in February.
It marks a key phase in efforts to secure a long-term, sustainable future for steel production in the Upper Spencer Gulf region, according to Industry, Innovation and Science Minister Tim Ayres.
“Australia’s steel industry is critical to the Australian economy and the community of Whyalla,” Ayres said.
“Opening of the sales process represents a critical step … for Australia’s sovereign capability and for good jobs in the Whyalla community.”
Selected bidders are now reviewing confidential business data as part of the first stage of due diligence and preparing initial proposals.
Backed by a $1.9 billion joint commitment from the Federal and State Governments, the sale process is a central element of a broader $2.4 billion package designed to modernise the facility into a globally competitive, low-emission iron and steel plant.
The steelworks has also recently added 75 employees across core operations and is actively hiring in maintenance and mechanical roles.
“Whyalla has long been at the heart of South Australia’s industrial strength – and now it has the potential to deliver sovereign steelmaking for the long term,” South Australia Premier Peter Malinauskas said.
“There is still a long way to go to secure a new buyer for the steelworks, however the start of the formal sale process with the establishing of a data-room for prospective buyers is a major milestone in this important process.”
