Mali ‘chooses words carefully’ as cracks appear in Whyalla furnace debacle

Uncertainty remains over when the Whyalla steelworks blast furnace will become fully operational, with Premier Peter Malinauskas appearing uncharacteristically frustrated by the situation.

After repeated assurances by GFG Alliance, visits by Mining Minister Tom Koutsantonis and significant media attention over the past month, uncertainty remains over when the Whyalla steelworks blast furnace will become fully operational.

Speaking to the media on Christmas Eve, Premier Peter Malinauskas appeared uncharacteristically frustrated by the situation, admitting it was the biggest issue on his mind heading into Christmas; reiterating that it was “occupying a significant amount of government effort and time”.

Premier Maliauskas at the Whyalla Steelworks. Picture: Ben Clark

“We haven’t seen things go as well as we would have liked over the last month,” the Premier said.

“But I know that there’s a lot of hard working people in the steelworks… who are doing everything they can to bring the blast furnace back to full operation.

“But it feels a bit like two steps forward, one step back.”

Indeed, after multiple failed attempts and broken promises by GFG, the government was either unwilling or unable to offer any timeline around when the blast furnace would be fully repaired and operational.

Asked whether it would be fixed by the end of the year, Mr Malinauskas responded: “Oh, look, you know, it’s impossible for me to say”.

“We’ve been told lots of things, what we’re interested in is what we can verify, and what I can absolutely verify is there are some good people working really hard at the moment to bring it back to full operation.”

While not outright criticising Whyalla steelworks owner Sanjeev Gupta, Mr Malinauskas made a few cutting comments once again exposing - if not outright tension between GFG and the government - than at least some disappointment over the situation.

Australian Prime Minister Anthony Albanese and South Australian Premier Peter Malinauskas visit the Whyalla steelworks. NCA NewsWire / David Mariuz

Premier Malinauskas is frustrated with the Whyalla steelworks blast furnace. Picture: Ben Clark

“We would always encourage any business owner just to be transparent, particularly when we are talking about such a significant asset for the state,” Mr Malinauskas said.

“But the people I care about most isn’t GFG, or the owner of the steelworks, it’s the people that work within it.

“They are good people, and they are working their guts out under really difficult circumstances.”

The Premier’s comments come after increasing concerns over the embattled company’s “precarious” financial situation, with reports on Sunday that 40 contract workers supplying waste management services to the steelworks operation had been made redundant.

But the Premier stopped short of promising financial assistance to any workers who might lose their jobs if the operation collapsed, instead reiterating the national significance of the steelworks.

“We are really serious about making sure that any actions a state government takes are well thought through, because making a bad call here could have severe consequences,” he said.

“Think about everything we build, every high rise tower, every bridge… the only place in this country that is capable of producing this key ingredient domestically is the Whyalla steelworks.”