Whyalla MP Eddie Hughes blasts Sanjeev Gupta as GFG cuts staff

Almost 40 staff have been sacked at GFG Alliance’s mining operations at Whyalla, with more losses to come.

GFG Alliance executive chairman Sanjeev Gupta.

Almost 40 staff have been sacked from GFG Alliance’s mining ­operations at Whyalla in South Australia with more to come over the next few months, following the company cutting 50 white collar roles earlier this year.

Whyalla MP Eddie Hughes on Thursday took to social media for the second time in a week to lob accusations at Sanjeev Gupta’s GFG Alliance, saying there were a rumoured 116 jobs being cut from the company’s mining division.

“Today is RU OK Day. Not a good day for some with more job losses at the Middleback Ranges mining operation,’’ the member for Giles said.

“Information at hand is 116 jobs to go on top of previous ­losses.’’

The Australian understands that 38 roles have been cut at mining contractor Golding so far, and GFG confirmed that further redundancies were coming.

“GFG’s South Australian mining business has been liaising with its major contractor partners to plan and prepare for the transition to a greener future and magnetite ore mining with the required ramping down of its hematite mine where the hematite reserve is nearing depletion following 120 years of mining,’’ the company said.

“GFG’s mining contractor Golding completed the first ­hematite ramp-down phase earlier this year.

“We are now entering the next planned stage of this process with affected team members engaged in ongoing consultation in line with their enterprise agreement.

“The ongoing changes associated with GFG’s Australian mine plan will continue over the coming months.

“GFG Alliance is moving forward on its journey to be carbon neutral by 2030 with a focus on mining the alternative and vast reserves of magnetite, the ‘best of the best’ raw material for the production of green steel and iron.’’

GFG sacked 50 white collar workers in August, while contractors have been complaining anonymously of being paid late.

Mr Hughes also vented his frustration earlier this week at the news that Mr Gupta had bought a $12.5m harbourside apartment in Sydney from radio identity John Laws, to add to his $34m Sydney mansion Bomera, and his £42m ($82m) mansion in London’s ­exclusive suburb of Belgravia that he had purchased in 2020.

“While he can find $10m-plus for an apartment on Sydney Harbour, contractors have to wait for his company to pay its bills,’’ Mr Hughes said.

“Contractors, casuals and ­labour hire companies continue to suffer due to continuing uncertainty at GFG’s Whyalla Steelworks, as do workers at the plant who are understandably concerned.

“Sometimes it just takes one more straw on the camel’s back to unleash the pent-up frustration and anger.

“The latest high-end Gupta property acquisition in Sydney might well prove to be that straw. An acquisition that comes on top of other high-end property purchases – at a time when my community is going through real pain and uncertainty.’’

Mr Gupta was hailed as a saviour when his company bought the steelworks out of administration in 2017.

He made promises running into the billions of dollars about steelworks upgrades and renewable energy projects in the years following his company’s purchase of the steelworks and iron ore mines. However, none of these have come to pass.

Originally published as Whyalla MP Eddie Hughes blasts Sanjeev Gupta as GFG cuts staff