Millions in extra funding for Whyalla Steelworks
The federal and state governments have committed an extra $275 million to allow the continued operation of the Whyalla Steelworks as its administrator looks for a new owner.
The state government said the additional funding, announced today, would enable administrator KordaMentha to maintain safe operations, pay wages and suppliers, and undertake works to strengthen the steelworks’ position as a viable long-term asset for a new owner.
The announcement comes following the opening of a sale process on June 24, 2025, led by KordaMentha, with 333 Capital as a sales advisor.
Federal Industry and Innovation Minister Tim Ayres said the new funding would give certainty to the population of Whyalla and nearby communities connected with the steelworks.
“Impressive progress has been made at the Whyalla Steelworks over recent months, and I recognise the dedicated workforce for engaging with the challenge and hard work of turning it around,” he said.
“The Government’s significant intervention has stabilised the steel works while keeping workers in jobs and keeping this critical Australian steelmaking asset running while the most suitable owner is found.
“The commitment to securing the most suitable owner will safeguard Australia’s future steelmaking capability, ensuring Australia has the steelmaking capability it needs for the future.”
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South Australian Premier Peter Malinauskas said the funding was a “vote of confidence” in the state’s ability to deliver a long-term steelmaking capability for Australia.
“We took decisive action to place the steelworks in administration, and together with the Commonwealth, have worked in partnership to put Whyalla in the best possible position to realise its economic potential with a modern manufacturing capability,” he said.
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“The steelworks has been stabilised, jobs are secure, and the sales process is proceeding well.
“Australian customers are now returning to but South Australian-made steel.”
The new funding comes after the Whyalla Steelworks were placed into administration with fast-tracked special legislation by the state government in February of this year, with KordaMentha taking over as its owner from GFG Alliance owner and billionaire industrialist Sanjeev Gupta.
The move to place the steelworks into administration followed a prolonged shutdown of its blast furnace in 2024 and revelations that Gupta owed significant debts.
The state and federal governments have already pledged $2.4 billion to save the steelworks.
