GFG Alliance targets break-even for Whyalla by mid-2025

GFG Alliance executive chairman Sanjeev Gupta said on Sunday that the Whyalla steelworks is generating between $13 million and $14 million in weekly turnover, with hopes of reaching break-even by mid-year.

The announcement followed last week’s agreement with global creditors, ending a four-year process triggered by the collapse of GFG’s former financier, Greensill.

The steelworks, which resumed production in January after two major outages last year, is implementing a “Back to Black” plan to normalise creditor payments and achieve profitability. GFG is also seeking to finalise a $US100 million debt package to support operations and creditor payments.

Meanwhile, BlueScope CEO Mark Vassella expressed interest in the South Australian facility, citing its potential for direct reduced iron production and significant iron ore reserves.

“We’re watching that situation closely,” Vassella said. “We feel for the people in Whyalla. We’ve assisted over the last year or so where we’ve been asked from a technical and an operational point of view.”

The news comes as it was revealed GFG subsidiary Liberty Primary Metals Australia owes the South Australian government “tens of millions” in unpaid royalties and approximately $15 million to SA Water.

Picture: supplied

Further Reading

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