19 February 2025

The Government of South Australia has taken action to secure the long-term future of the Whyalla steelworks and associated mines by placing the business's owner into administration.

The state has appointed KordaMentha as an administrator of OneSteel Manufacturing Pty Ltd under section 436C of the Corporations Act 2001.

OneSteel is part of the GFG corporate group and is the legal entity that owns and operates the Whyalla steelworks and associated mines.

During this period of administration, the administrator investigates options including sale of the business, with the ambition of delivering the best outcome for creditors and continued operation of the steelworks.

The administrators will be able to trade on and pay all debts incurred during the period of administration.

KordaMentha has advised the state government it intends to appoint an experienced special adviser to assist the administration and is engaging with parties including BlueScope.

The state government took the decision to place OneSteel in administration, after losing confidence in the financial capability of GFG to pay its bills as and when they fall due, and in GFG’s ability to secure funding needed for the ongoing operation of the steelworks.

The government has received expert advice from its Steel Taskforce that a continuation of the status quo and a lack of investment risks the Steelworks deteriorating to the point where creditors will be impacted even further and where it will be difficult, if not impossible to turn the operation around.

The appointment of the administrator was facilitated by an urgent and minor change to the Whyalla Steel Works Act 1958 which passed the Parliament of South Australia this morning.

This amendment makes GFG’s existing debts to the state government apply as a charge across all, rather than some, of the real property of OneSteel, and makes them readily enforceable.

The legislation, which is specific to the Whyalla Steelworks, also imposes new transparency obligations on its owner.

The Premier of South Australia and Minister for Energy and Mining will travel to Whyalla today, and will  tomorrow outline elements of a significant funding package to help ensure the current operation of the steelworks throughout the period of administration.

The state government and administrator will take steps to stabilise operations and explore a possible sale to a new owner in a way that keeps the assets together and the steelworks operational.

Whyalla is critical to sovereign Australian steel. It’s one of only two Australian steelworks, produces 75% of Australian structural steel and it is the only domestic producer of steel long products.

Steel from Whyalla is how Australia can build and maintain its infrastructure – whether it’s railways, high-rise towers, housing, windfarms, transmission, bridges, defence assets or hospitals.

Whyalla steel is present in big infrastructure projects, from Optus Stadium in Perth to the Western Sydney Airport terminal and rail link, to the Cross River Rail project in Brisbane.

Without Whyalla steel, Australia would rely on steel from overseas amid a deteriorating strategic environment and a national housing crisis.