The Australian government has announced a £1.2bn support package for the troubled Whyalla steelworks in South Australia, aiming to protect thousands of jobs and secure the facility's future. Prime Minister Anthony Albanese confirmed that the federal and state governments would jointly fund the administration of the steelworks while a new owner is sought.
The package includes £50m in immediate creditor assistance, £16.3m for infrastructure upgrades, and £192m to stabilise operations. A further £950m has been allocated for long-term upgrades to ensure the steelworks' sustainability. The intervention follows the South Australian government's decision to place the plant's owner, GFG Alliance, into administration.
GFG chairman Sanjeev Gupta criticised the move, stating that the state government is on the 'wrong course' and is seeking legal advice. Gupta had previously claimed a debt settlement deal with Greensill Capital creditors had been reached. The state government is owed tens of millions of dollars, including £7.5m to SA Water.
Administrators KordaMentha said maintaining operations would preserve around 4,000 direct and indirect jobs. The federal government also announced a £250m green iron investment fund to support the transition to green steel production at Whyalla.
Opposition leader Peter Dutton labelled the government's approach a 'disaster', warning of job losses if the renewable energy policy continues. The South Australian premier, Peter Malinauskas, stressed that no taxpayer-funded bailout would go to GFG, but rather to secure the steelworks' future under new ownership.
