The Whyalla Steelworks in South Australia has officially gone into administration, but the operation is certainly not out for the count.
Recent months have been turbulent for Whyalla, with multiple blast furnace shutdowns and coking coal shortages shutting down operations for weeks at a time.
Things were looking up at the start of 2025, when the blast furnace was successfully brought back online to cast the first steel of the year, but the Sa Government announced yesterday it would be putting Whyalla’s parent company GFG Alliance into administration.
The SA Government cited a lack of confidence in the company’s ability to repay its debts and passed minor changes to the Whyalla Steel Works Act (1958) in order to appoint an administrator to Whyalla.
“The administrators will be able to trade on and pay all debts incurred during the period of administration,” the SA Government said.
“This means going forward, workers and contractors will be paid.”
According to the Sydney Morning Herald, the Federal Government will offer up to $500 million in funding for ‘green upgrades’ to the mine’s next owner.
KordaMentha’s Mark Mentha said the voluntary administrators’ intention is for Whyalla Steelworks to continue operating during the administration period, which will “preserve around 4000 direct and indirect jobs”.
“As administrators, our job is to examine the financial position of the Company, stabilise the business and maximise the chances of the business continuing in the interests of all stakeholders,” Mentha said.
“With the funding support of the South Australian Government and support from other interested stakeholders, Whyalla Steelworks and Mining will remain in business under our control while we assess the next alternatives and complete our investigations.”
Creditors are set to meet for the first time at the start of March to assess next steps, which is hoped to include finding a buyer for the operation.
Whyalla is one of only two Australian steelworks, producing 75 per cent of Australian structural steel.
