Sanjeev Gupta says iron ore mining at Whyalla to increase more than tenfold

Iron ore mining at Whyalla will expand more than 10 times while the workforce at the mines and steelworks will quadruple over the next eight years, Sanjeev Gupta says.

GFG Alliance executive chairman Sanjeev Gupta at the Whyalla steelworks.

GFG Alliance chairman Sanjeev Gupta says his company wants to quadruple the workforce of his Whyalla mining and steelworks operations and boost magnetite iron ore mining more than ten-fold to take advantage of the green steel revolution.

Speaking at a conference in Perth, Mr Gupta said the combination of renewable energy and soon hydrogen, sourced from the South Australian State Government’s planned hydrogen plant, meant Whyalla was perfectly placed to be at the heart of a transformation of Australia’s steel industry.

Mr Gupta, who has in the past made a number of bold pronouncements for his South Australian operations, most of which fell by the wayside when his financier Greensill collapsed last year requiring a scramble to refinance more than $5bn across his global operations, said renewable energy was the key to unlocking the future of Whyalla.

Mr Gupta said GFG’s magnetite iron ore mines in the broader region surrounding Whyalla contained more than four billion tonnes of resources.

“Today we’re producing around two and a half million tonnes of magnetite, but we intend to up that figure to 15 million tonnes by 2026 and then to 30 million tonnes by 2030,’’ Mr Gupta said.

He said GFG had recently produced a batch of pelletised iron ore, which would be at the heart of its “Greensteel” ambitions.

“These pellets are the mineral equivalent of a 1999 vintage Penfolds Grange,’’ he said.

“We could, of course, just sell them on, and no doubt we shall be doing that as well.

“But in line with our philosophy of climbing the value chain, we will also be making and selling the wine, not just exporting the grapes.’’

News Corp Australia understands the first step along the development pathway, from 2.5mt to 7.5mt, is already well advanced.

Mr Gupta has previously indicated his scepticism that hydrogen can be economically transported, and he reiterated on Tuesday he believed it must be used at the source.

The SA Government is planning to build the world’s largest hydrogen electrolyser, an associated power plant and energy storage facility, with the $593m project expected to be built by the start of 2026.

Mr Gupta said Whyalla’s position, with a combination of iron ore reserves, renewable energy, hydrogen and port facilities, meant it was “the hidden treasure of Australia’’.

“This nation’s wonderful combination of billions of tonnes of high grade ore and almost infinite power from the sun could be at the heart of a new, clean and sustainable industrial revolution,’’ he said.

“An unmissable chance to turn limitless sunshine and wind into endless prosperity ... for Australia.’’

Accounts filed with the corporate regulator recently showed that Mr Gupta’s Liberty Primary Metals, which owns the Whyalla operations, booked a $434.2m profit for the 12 months to June 30, helped by surging coal revenues from its Tahmoor colliery south of Sydney, where income rose 30 per cent.

Sales of iron ore from the company’s SA mines delivered $950.8m in revenue, down from $1.15bn the previous year.

Originally published as Sanjeev Gupta says iron ore mining at Whyalla to increase more than tenfold