Rob Lucas wants more details before releasing $50m to Sanjeev Gupta for Whyalla steelworks redevelopment

Wealthy UK businessman Sanjeev Gupta is requesting a taxpayer cash injection for his Whyalla rebirth plan, but the State Government wants to know more before granting him up to $50 million.

British industrialist Sanjeev Gupta plans to invest $1 billion or more in Arrium's Whyalla steelworks to ensure its future viability. Picture: AAP Image/David Mariuz

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UK billionaire Sanjeev Gupta is in negotiations for injections of taxpayer cash to aid his Whyalla rebirth plan, but the State Government says it is still working to ensure a “sustainable” proposal before releasing up to $50 million.

The former Labor State Government put the money on the table almost four years ago, as the Whyalla steelworks sunk into administration weighed down by heavy debt.

Mr Gupta bought the steelworks and made a much-heralded “big reveal” of his plans in December 2018, at an event attended by politicians from both sides of the aisle in state and federal government.

The plans included a massive upgrade of the existing works, and possibly building a second, plus a four-star hotel for Whyalla.

Treasurer Rob Lucas yesterday told State Parliament the $50 million offer, of which none has been paid, still stood.

He said the Government had been briefed on Mr Gupta’s “latest version of the transformation plan”, which included requests from state and federal governments.

“We will continue to engage with the company in the interests of trying to see a viable long-term future for Whyalla,” Mr Lucas said.

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Fitter and turners Ken Roesler and Paul Monaghan at the Caster Maintenance Services area of the Heavy Machine Shop at the Whyalla steelworks in 2017. Picture: Dylan Coker

“The prime responsibility for that rests with the people who have taken it (the steelworks) over.”

Opposition Leader Peter Malinauskas said the steelworks was essential for local jobs and national industry.

“We have a situation on the ground at the moment in Whyalla where there is growing anxiety about the redevelopment plans,” he said.

“All of us desperately hopes and wants the best for GFG at that site.

“It’s important that hope now starts to get realised into practical investment.”