Liberty Steel sought government loan guarantee: report

There have been media reports that Sanjeev Gupta’s GFG Alliance approached federal and state governments for a government guarantee to aid the Whyalla smelter’s restructure and expansion.

Todays’s report, in The Age and Sydney Morning Herald, reported sources who claim an informal approach was made to a joint Commonweath/South Australian taskforce about the possibility of a public debt guarantee.

As reported in @AuManufacturing news, Liberty Primary Steel – part of GFG Alliance – is investing $600 million in Whyalla to boost capacity to 1.8 million tonnes a year.

GFG Alliance has also contracted China Metallurgical Group Corporation (MCC) to study the feasibility of producing 10 million tonnes a year at Whyalla.

At the same time Liberty is investing $1 billion in solar and pumped hydro energy generation capacity.

The newspapers said the federal government reaction to the approach had been lukewarn.

However such a guarantee would be similar to a $300 million guarantee given by the SA Government to Nystar to support the rebuilding of the Port Pirie lead smalter..

Gupta referred to the likelihood of a need for state or federal support for his plans when announcing the smelter expansion last year.

SA Premier Marshall was sitting alongside him when he made the announcement.

Picture: Whyalla steelworks

Subscribe to our free @AuManufacturing newsletter here.