Whyalla steelworks headed for administration as SA parliament rushes through legislation

Sanjeev Gupta’s Whyalla steelworks will be plunged into administration as the state government launches an extraordinary bid to seize control of the crisis.

• The other Whyalla workers paying the price

Sanjeev Gupta’s Whyalla steelworks will be plunged into administration as the state government launches an extraordinary bid to seize control of the crisis.

Legislation has been rushed through parliament giving the state government support to act on its debts related to GFG Alliance, owner of the Whyalla Steelworks.

Standing orders were suspended for the legislation to now be passed in both the lower and upper house.

Premier Peter Malinauskas called upper house members to an extraordinary meeting in parliament on Wednesday morning.

MPs were not told the subject of the special meeting.

BREAKING: The state government’s forced through legislation that gives them the power to take action on debts owed by Whyalla Steelworks operator GFG Alliance @7NewsAdelaidepic.twitter.com/C1LZh7mSJ3

— Michaela Komarek (@KomarekMichaela) February 19, 2025

The Premier leaves an emergency meeting at Old Parliament House. Picture: Dean Martin

Politicians leaving an emergency meeting at Old Parliament House. The Premier called an emergency meeting. 19 February 2025. Picture: Dean Martin

The meeting started at 10.30am, with upper house MPs, plus the Premier, Energy and Mining Minister Tom Koutsantonis, Attorney-General Kyam Maher and Steel Task Force chairman Bruce Carter.

Upper house members included Greens co-leaders Robert Simms and Tammy Franks, along with independent Frank Pangallo.

Outside the meeting, Mr Malinauskas declined to comment on its subject but said: “I’m very grateful to be working closely with the crossbench.”

MPs and Mr Carter declined to comment.

In parliament on Tuesday, Mr Malinauskas directly reminded directors of Whyalla steelworks owner GFG Alliance to ensure they are not breaching laws by failing to pay debts and trading while insolvent.

Asked in parliament whether the state government intended to force GFG Alliance into administration, Mr Malinauskas issued a blunt reminder to the firm’s directors about their corporate legal obligations as the steelworks’ owner.

GFG Alliance executive chairman Sanjeev Gupta on Monday said the Whyalla steelworks was turning over $13m-$14m per week, and he hoped the operation would be breaking even by mid-year, after being at “death’s door” in recent months.

Sanjeev Gupta has since spoken out on his plans to break even by mid-year. Picture Mark Brake

The Premier and Energy Minister watching on in the Upper House as the Chamber prepares to amend the Whyalla Steelworks [e-mail]/CRZ3Xd3THX

— Gus Macdonald (@Gus_Macdonald_) February 19, 2025

Responding to Opposition questions about his message to GFG creditors, Mr Malinauskas branded the steelworks’ future “one of the more complex public policy challenges the state has seen in decades”.

Responding to Mr Malinauskas’s comments in parliament, a GFG spokeswoman on Tuesday night said the directors were “very conscious of and are complying with their duties”, adding this had been made clear in multiple statements.

“The directors are fully focused on continuing to progress the business turnaround at the Whyalla steelworks,” she said.

Opposition leader Vincent Tarzia said the government was “in chaos” and Mr Malinauskas was “scrambling because he has allowed the situation in Whyalla to spiral”.

“The government has known the full extent of this issue for over six months, and now at one minute to midnight, he is securing his position, leaving families and businesses in Whyalla on the brink,” he said.

“Peter Malinauskas has just fired a cannonball through the heart of the South Australian economy and left a mess for future generations to clean up.

“The Liberal Opposition have been sounding the alarm on this since September last year, but all we have been met with is secrecy and spin.

The people of Whyalla and South Australia deserve better.”