Whyalla revamp analysis: Dogged determination saved plan from falling through

It’s chilling to ponder what might have happened had Sanjeev Gupta not bought the Whyalla steel and iron ore operations, but it should be remembered he was actually locked out of the bidding process at one stage. But his tenacity got him back in the race.

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History is made by those who refuse to say no, who see opportunity where others see failure, and those with the tenacity to follow through on their ambitious plans.

It seems, in Sanjeev Gupta’s case, we may be seeing a confluence of these three attributes, and, based on his performance so far, we should thank our lucky stars.

It’s chilling to ponder what might have happened had Mr Gupta not bought the Whyalla steel and iron ore operations, but it should be remembered he was actually locked out of the bidding process at one stage.

We came within a whisker of this very eventuality.

It was only his dogged tenacity, and the failure of the competing Korean bidder to meet a key deadline, that allowed him to get back into the race.

Of course there’s still much to be done for Mr Gupta to realise his grand vision of an integrated steel, power and mining project at Whyalla, then a globally significant further expansion, and we can’t pass judgment yet that it will be successful.

But with key contracts signed now which lock in $600 million in upgrades to give the existing steel works the capacity to produce higher quality rail and structural steel products, Mr Gupta is answering his doubters.

Billionaire Sanjeev Gupta, an example of a steel "mega plant" in Asia, top right, an artist’s impression of planned new community facility at Whyalla, bottom left, and a map showing the plans for an expanded steelworks in the city, right.

Mr Gupta said in his speech in Whyalla that during the town’s darkest days, the question was what the town would turn to for its salvation, with steelmaking having failed.

Mr Gupta saw a very different set of circumstances.

He saw “almost perfect local conditions” for what he wanted to do, which was built the next generation of steelmaking in Australia, backed by abundant renewable energy.

The town had a port, it was close to iron ore mines, it had potentially vast supplies of renewable energy.

Where others saw an ageing steel mill past its prime, Mr Gupta saw a workforce which had taken a pay cut to try to save its future, and a community which would fight tenaciously to keep that future alive.

He said in his speech that the notion that his vision couldn’t be realised was like “a red rag to a bull’’.

GFG Alliance chairman and Whyalla steelworks owner Sanjeev Gupta, drawn by artist and illustrator Leith O'Malley.

For those lucky enough to have met Mr Gupta, which includes many people of the town of Whyalla where he spends a lot of time, there is the sense of a community-minded man, who is generous with his time, despite being almost heroically busy.

He talks frequently about family and community, and his desire for Whyalla to be a great place to live, beyond just a great place for him to have a steelworks.

Businesses working with him reflect that it’s like “taking a tiger by the tail’’.

He moves fast, with $40 million in feasibility studies done to date on Whyalla projects testament to this.

Mr Gupta, via his projects both in Whyalla and around the globe, where he has bought a number of steel mills and resources projects in recent years, many also on the brink of closure, has already proved himself to be a visionary.

How he is remembered by history will be dictated by what happens over the next 10 years.

I suspect we are lucky to be a part of that vision.