The South Australian and federal governments have announced a joint $10 million support package for hundreds of Whyalla workers who have lost their jobs as the steelworks’ blast furnace is permanently switched off today.

It follows a $2.4 billion city-saving package announced by the governments in February last year, with money set aside for the administrators and to pay back creditors of OneSteel. Funds were also earmarked for future upgrades of the plant.

“It’s a sad day… we’ll have some tough times, hopefully a little bit less, but the long-term future I certainly believe in,” Mayor Phil Stone said, adding that Whyalla expected the closure would come.

While Australian Workers’ Union Whyalla and Eyre Peninsula branch organiser Shane Karger said “we’re not going to give up”, adding that this was day one of moving toward a new future for Whyalla when a “bona fide” new owner was secured for the plant.

“It’s a massive relief for the Premier to come forward with full redundancy packages,” Karger said.

The 60-year-old blast furnace was described as “beyond repair” in a joint state and federal government media release, SA Premier Peter Malinauskas saying today the decision was “difficult” but “inevitable”.

It is a key component in the creation of steel that was first commissioned in 1965 and, after years of being patched, has been offline since April.

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Administrators KordaMentha recommended the permanent switch-off, meaning any new buyer of the steelworks will have to find an alternative method to produce steel at the regional factory.

In the meantime, steel ‘blooms’ – semi-finished blocks of steel ready for the steel rolling mill – will be sent to Whyalla so the factory can continue making steel products.

Around 500 employees and a further 100 labour hire workers were impacted by today’s announcement, made in a joint statement by the Premier, SA Treasurer Tom Koutsantonis, SA Steel Assistant Minister Lawrence Ben, Federal Industry and Innovation Minister Tim Ayres and Federal Workplace Relations Minister Amanda Rishworth.

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While the blast furnace will cease operations, mining, port and other activities at the site will continue.

The sale process for the steelworks is continuing, supported by $1 billion in state government funding for worker wages and the general operation of the site.

According to today’s announcement, KordaMentha is continuing to consult with workers and unions to understand future workforce needs, informed by proposals for the future of the steelworks.

The Premier said he was working with major employers in the region – such as BHP and Hallett Group – to help find alternative employment for the redundant staff.

“The blast furnace at Whyalla is 60 years old and for many years has not had the investment it deserves through recent decades,” the Premier said.

“It is only due to the Herculean efforts of the workers in Whyalla that it has survived this long

“The future for Whyalla rests in new equipment, new capital, which is what we are achieving through the sale process.”

Steelworks administrators KordaMentha were meant to announce their preferred bidder by the end of September for the business that it took over running in February 2025, a business that will require billions of dollars in investment to get it up operating again.

The Premier told reporters today that the “decision of who will operate the steelworks in the future will still be made before Christmas”.

Either Indian steel giant Jindal Steel International or Australian-owned M Resources will be named as the preferred buyer of the plant.

But Australian steel business BlueScope – the company that has been advising KordaMentha on the steelworks’ current operations – has the first right of refusal for any deal put forward, keeping it firmly in the running to purchase the ailing asset.

Support package unveiled

The joint $10 million package – split 50/50 between the SA and Federal governments – announced today was designed to include assistance for workers, families and communities affected by the closure of the blast furnace.

A “Whyalla Structural Adjustment Package” would help people move into new employment, build new skills and connect with other local employers.

Workers can register for free online to be contacted by a “government employment services consultant” to discuss what support was available on a case-by-case basis.

Income support payments, emergency relief and financial counselling were listed as available supports, but no specific figure or frequency of payments specific to Whyalla job losses had been provided at the time of publication.

The support includes career advice, job search assistance, training opportunities, connections to local job opportunities, financial information and wellbeing support.

Workers, including contractors, who have lost contracted employment or experienced reduced hours from OneSteel Manufacturing or an eligible supply chain business were eligible to access the services.

The partners or those who are married to affected workers may also be eligible for support under the Whyalla Structural Adjustment Package.

The Whyalla Worker Transition Centre has also been established at TAFE SA Whyalla Campus where redundant workers can access advice and services.

Rishworth said the Federal Government’s focus was on “ensuring workers have the support they need and no one is left to navigate this alone”.

“From today, my department has staff on the ground in the Whyalla community, focussed on coordinating local support and guiding workers and families to assistance quickly,” she said.

“Information sessions, workshops and events will help people understand available employment, training, financial and wellbeing supports, plan their next steps, and engage with services in a way that suits their circumstances.”