Premier Malinauskas urges GFG’s Gupta to address financial obligations amid concerns for Whyalla steelworks

Premier Peter Malinauskas has issued a stern warning to GFG Alliance’s Sanjeev Gupta, urging transparency and immediate action on overdue financial commitments as concerns mount over the future of the Whyalla Steelworks in South Australia.

Amid reports of significant arrears in royalties and payments to contractors, the Premier emphasised the need for Gupta to prioritise his investments in Whyalla over personal luxuries, according to The Advertiser.

Sanjeev Gupta, the British billionaire behind GFG Alliance, has faced criticism for remaining silent about his conglomerate’s financial issues while reportedly staying in the Middle East. This silence comes at a time when the Whyalla Steelworks, a critical component of the local economy and Australian steel manufacturing, is grappling with financial instability.

Last week, Malinauskas revealed that the state is owed tens of millions in royalties, with GFG Alliance falling six months behind in payments. This financial strain extends to local contractors connected to the Whyalla operations, who are also facing substantial unpaid bills. The state law prevents the disclosure of the exact figures but the impact is reportedly significant.

The situation has prompted both state and federal government officials to express their frustration openly. Federal Industry Minister Ed Husic joined the call for action, emphasising the need for Gupta to fulfill his financial obligations.

“Pay your bills,” Husic insisted, reflecting a growing impatience with GFG Alliance’s handling of the matter.

The local community in Whyalla is feeling the economic pressure, with small businesses like SkyVision, operated by local resident Roger Jordan, experiencing significant downturns. Jordan’s business has contracted from three workers to just himself, underscoring the broader economic impact of GFG’s financial challenges on the town.

As political pressure mounts, Malinauskas has assured that his government is prepared for various outcomes and remains committed to supporting the people of Whyalla and the future of steelmaking in the region. The Premier’s call to action highlights the urgent need for GFG Alliance to address its financial commitments and invest in the sustainability of its operations in Whyalla, ensuring the viability of Australian steel manufacturing and the economic stability of the local community.

Picture: credit GFG Alliance