Sale process for collapsed Whyalla steelworks gets underway

The sale process for the Whyalla Steelworks in South Australia and associated mining operations — previously held by GFG Alliance — has formally opened, with “strong early interest from global steelmakers and consortia” according to the federal and South Australian governments.

The steelworks were forced into administration by the SA government in February, with KordaMentha appointed as administrators, with unpaid debts since reported as totalling over $1.3 billion. 

The independent sale process of the assets is being led by KordaMentha and 333 Capital. According to a statement from federal industry minister Tim Ayres on Tuesday, this represented a “significant step towards securing a long-term, sustainable future” of the operation and follows a “great deal of work and initial capital has been expended rectifying an extended period of underinvestment” by GFG.

The SA and federal government have jointly committed $1.9 billion in funding to support a transformation into a “pit to port” iron and steelmaking facility. 

Leading buyers had been allowed access to the data room to perform due diligence ahead of an expected sale.

Ayres said that “the Australian Government wants to ensure steelmaking capacity remains here onshore. 

“There is real opportunity to manufacture iron and steel using Australia’s abundant ore and renewable energy to set up this industry and the Whyalla steelworks for the decades to come.

“Today’s opening of the sales process represents a critical step in securing the sustainable long-term future of the Whyalla steelworks – for Australia’s sovereign capability and for good jobs in the Whyalla community.”

KordaMentha is continuing to stabilise and enhance operations, according to the release, and 75 new employees – including five apprentices already onboarded this year – have been added across core areas of the steelworks, including blast furnace operations, steelmaking and finishing. 

Recruitment is ongoing for further new roles, including 27 new apprentices scheduled to begin work from 2026.

Picture: credit GFG Alliance

Further reading

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

Infrabuild to the rescue as loan bolsters GFG Alliance

Stokes family scouts Whyalla steel mill as sale process heats up

Whyalla steelworks blast furnace faces temporary shutdown amid funding concerns

With Whyalla steelworks forced into administration, Australia has crucial decisions to make on the future of its steel industry