Whyalla Steelworks owner Sanjeev Gupta plans two iron ore mines

WHYALLA’S saviour Sanjeev Gupta has added yet another string to his bow, securing Government approval for two mining leases near the steel city.

• Gupta’s electric car plan
• GFG Alliance takes ownership of Whyalla’s steelworks
• GFG Alliance agrees to expansion of Whyalla steelworks
• Sanjeev Gupta secures multimillion-dollar energy deal

WHYALLA’S saviour Sanjeev Gupta has added another string to his bow, securing Government approval for two mining leases near the steel city.

Mr Gupta’s SIMEC Mining company intends to open two iron ore mines, Iron Warrior and Iron Sultan, and create as many as 186 new jobs.

Construction is expected to start across both sites in early March, just weeks before the state election.

The approval is the latest success for Mr Gupta after The Advertiser revealed he had the State Government’s support for an early plan to build electric cars at the former Holden plant in Elizabeth.

The Iron Sultan mine is expected to supply the Whyalla Steelworks, purchased by Mr Gupta’s GFG Alliance in August, creating 16 direct jobs and a 140-strong contractor workforce.

Its hematite iron ore will be blended into the Whyalla Pellet Plant’s magnetite concentrate feed in a bid to lower the cost of GFG’s steelmaking operations.

Mineral Resources Minister Tom Koutsantonis said the mines demonstrated Mr Gupta’s commitment to developing South Australian iron ore assets and transforming the steelworks into a “more sustainable” venture.

“Iron Sultan will play a significant role in reducing the costs of steelmaking at Whyalla steelworks while Iron Warrior continues South Australia’s role as a reliable iron ore exporter,” he said.

It is unclear how much money will be poured into the new mines by the British billionaire, who has rescued 25 British steel works, car plants and engineering workshops from closure.

GFG Alliance executive chairman Sanjeev Gupta. Picture: Renee Nowytarger / The Australian

Premier Jay Weatherill said the new mines would support Whyalla’s existing workforce and create new opportunities.

“The Government has worked hard to secure Whyalla’s future and will continue to do so in partnership with GFG Alliance,” he said.

Mr Gupta’s purchase of the Arrium steelworks – which plunged into administration in April 2016 – saved up to 6000 jobs in the Upper Spencer Gulf.

His sizeable resources commitments come just months after he bought a majority stake in Adelaide renewables company ZEN Energy.

The renamed SIMEC ZEN secured an energy supply deal, potentially worth hundreds of millions of dollars, with the State Government last month.

It will supply 80 per cent of the State Government’s electricity needs this year, and 100 per cent next year.

SolarReserve’s mooted 150MW Port Augusta solar thermal plant – where Mr Weatherill will attend a field office opening this morning – will then supply the Government with its electricity from 2020.