GFG Alliance agrees to expansion of Whyalla steelworks as part of $1bn operational transformation
THE new owner of the Whyalla steelworks has vowed to lift its production by 50 per cent to 1.5 million tonnes as part of a $1 billion operational transformation.
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THE new owner of the Whyalla steelworks has vowed to lift its production by 50 per cent to 1.5 million tonnes as part of a $1 billion operational transformation.
GFG Alliance, headed by British billionaire Sanjeev Gupta, has given the green light to the expansion, having developed a final concept plan for the transformation of the former Arrium site.
The plan includes a number of initiatives, including the introduction of new technologies and cost-cutting through energy efficiencies such as co-generation and energy capture.
The GFG Alliance will also explore development of the Whyalla port into a world-scale, multi-user facility to support the steelworks and the company’s mining operations.
The announcement follows a 100-day review which began after GFG bought Arrium out of administration in August.
GFG officially took charge of the steelworks and Arrium’s other assets in September.
Mr Gupta said the transformation would significantly reduce the unit cost of steel production.
He said that the project would be financed through a combination of funding sources, and would require additional funding from state and federal governments.
“We have developed a comprehensive investment concept plan for the Whyalla steelworks and mining businesses that will deliver a step-change in operational and financial performance, ensuring the long-term sustainability of both the operations and the local community,” he said.
“We strongly believe that the transformation will also provide a solid basis for our broader vision of making Whyalla a centre of manufacturing excellence.”
GFG’s investment in the mining operations include plans to increase iron ore reserves and further unlock large-scale magnetite potential.
The company will continue with feasibility studies into 2018, drawing on the State Government’s previous grant of $50 million.
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