Steelworks administrators make ‘urgent’ bid to take over Whyalla port
Intervention by the Federal Court giving the Whyalla Steelworks control of the city’s port is required in order to avoid the collapse of the business, administrators claim.
![Administrator Michael Korda claimed it needed to control the port facility or risk “OneSteel’s operations… [closing] down”.](https://wp.solsticemedia.com.au/wp-content/uploads/2025/04/Whyalla-Port.jpg?w=1024)
The administrators of OneSteel – the operator of the Whyalla Steelworks and mining operations in the Middleback Ranges – have requested the Federal Court declare its attempt to re-possess the Whyalla port as valid and effective.
In court documents made public by administrators KordaMentha on Tuesday, administrator Michael Korda claimed it needed to control the port facility or risk “OneSteel’s operations… [closing] down”.
KordaMentha was appointed administrator of OneSteel earlier this year after the state government passed special purpose legislation in order to tip the steelworks into administration.
Prior to that, OneSteel was owned and operated by companies controlled by British steel magnate Sanjeev Gupta, who is also a director of Whyalla Ports Pty Ltd.
Since KordaMentha’s appointment on 19 February, administrators have been operating the loss-making business. They’re funded by $400 million in state and Federal government money.
In an affidavit supporting KordaMentha’s application to declare a “purported Lease” void and that a ‘Notice of Termination and Re-Possession of Premises’ is effective, the administrators said the business continues to lose more than $1 million per day.
Administrators argued that OneSteel needs control of the Whyalla Port in order to provide “an interested party clear title to the assets and business of OneSteel including, mining operations, steelworks and port services”.
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“As port services are so integral to operations, these issues must be finally determined as soon as reasonably possible,” Korda said in his affidavit lodged on 2 April 2025.
The consequences of the orders not being granted in the administrators’ favour are dire, Korda claims.
“If we are unable to obtain urgent relief and this results in a delay to, or frustration of, the proposed sale or recapitalisation of OneSteel, OneSteel may be forced to close operations because the funding of OneSteel is fixed and of limited duration,” he said.
Government funding of $400 million was granted with the expectation that the administration would conclude within six months of administrators being appointed.
In his affidavit, Korda said Whyalla Ports claims it has leased from OneSteel the land from which the port at Whyalla operates.
Administrators, however, dispute that and note that OneSteel is authorised to conduct mining, steel manufacturing and port operations under the terms of the Whyalla Steel Works Act 1958.
As such, on 27 March 2025 OneSteel served Whyalla Ports and its lawyers a document described as a ‘Notice of Termination and Re-Possession’.
Whyalla Ports disputed this and via lawyers at Norton Rose Fulbright emailed the administrators’ lawyers claiming that the land was subject to a lease executed on 28 June 2018 between OneSteel and Whyalla Ports.
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The administrators’ lawyers disagreed in turn, leading to KordaMentha turning to the Federal Court to make a determination over the dispute.
Among other claims in his affidavit, Korda said some customers no longer wanted to work with the port which handles the import and export of commodities, mining consumables and equipment.
“We are being contacted by parties that previously engaged with Whyalla Ports Pty Ltd who have told us that they no longer wish to engage with Whyalla Ports Pty Ltd,” he said.
Further, he said Whyalla Ports has no employees and the facility is controlled and operated by 24 OneSteel employees who are paid by OneSteel.
Ultimately, he said time was “of the essence” in this case.
“The Steel Task Force has an expectation the administration will be concluded within six months of its commencement and have provided funding on this basis,” Korda said.
“Currently the day-to-day operations are continuing to generate losses in excess of $1 million a day. In addition, we are continually required to inject capital into the Steelworks because of the poor state of the OneSteel plant and equipment, including operations relating to the Port.
“Based on current estimates, without further funding from the Commonwealth or State it is unlikely that we can continue OneSteel business operations beyond six months from our appointment.”
He added that the “sale process cannot commence until the Port issues are resolved”.
“We are concerned as Administrators that if the issues in relation to the Port are unable to be resolved as a matter of urgency, we will not be able to continue to run the business as usual, stabilise the business, or prepare the business for sale,” he said
“Given our current funding, it is integral that the sale process gets underway immediately.”
Justice Moshinsky ordered yesterday that the defendant file and serve any affidavits by 5pm on 17 April, and that the proceeding be listed for hearing on 5 May 2025.
Sanjeev Gupta’s GFG Alliance has been contacted for comment.
