‘A long way to go’ as steelworks sales process opens
Steelworks advisor BlueScope is considered a frontrunner amid “strong early interest” in the Whyalla Steelworks sale process.
Global steelmakers have shown “strong early interest” in buying the Whyalla Steelworks and its mining operations, as the SA government announced the opening of the sale process.
In Whyalla on Tuesday, SA Premier Peter Malinauskas and federal Industry Minister Tim Ayres delivered an update on their governments’ $2.4 billion Sovereign Steel package underpinning jobs and economic resilience in the region.
In February, the state government rushed through legislation so it could place the steelworks into the hands of administrators KordaMentha because of the mounting debts of OneSteel’s owners, GFG Alliance.
Earlier in 2025, GFG was laying off workers and dozens of small businesses were doing the same because they weren’t being paid, Malinauskas said.
“Now, the steelworks is putting on staff, and suppliers and contractors are in a much better position for the future,” he said.
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“There is still a long way to go to secure a new buyer for the steelworks, however the start of the formal sale process … is a major milestone.”
As part of the support package, the federal and SA governments have jointly committed $1.9 billion to transform the operations into a commercially viable, low-emissions, “pit to port” iron and steel facility.
Selected prospective buyers have been given access to a secure data room, allowing initial due diligence so parties can prepare non-binding indicative offers.
A range of global steelmakers and consortia had expressed interest in acquiring and transforming the integrated operations, according to a joint government statement.
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BlueScope, which was appointed steelworks and mine adviser when GFG Alliance was pushed into administration in February, is considered a frontrunner.
KordaMentha continues to stabilise operations, with an extra 75 staff added across core areas, including blast furnace operations, steelmaking and finishing.
Senator Ayres said there was an opportunity to set up the industry and the steelworks “for 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,” he said.
Recruitment is ongoing for further new roles, including in mobile maintenance and diesel mechanics, and 27 new apprentices in 2026.
As part of the $100 million assistance package for local businesses, 61 SA businesses owed money by GFG have received $15 million through the Business Creditor Assistance Scheme.
Fifty-seven small businesses that had lost revenue because of the steelworks’ decline have received $570,000 in grants.
The SA state budget in June allocated $650 million towards the overall support package.
The state government was forced to scrap its pledge to build a $593 million hydrogen plant at Whyalla to help fund the package.
The government also said a $30 million upgrade at Whyalla had been completed to allow larger aircraft in for faster flight times and more passengers.
