More than 250 jobs at GFG Alliance-linked contractor Golding in Whyalla set to be axed

Embattled Whyalla is bracing for another financial blow, with about 250 jobs to cut by a local contractor.

More than 250 workers will lose their jobs by the end of January at Whyalla-based mining contractor Golding, which has links to the steelworks’ owner GFG Alliance.

Management told workers on Wednesday that 253 jobs would be lost, with another round of cuts expected later this year.

It’s believed 40 per cent of the job losses will be Whyalla-based workers, with the remainder coming from Port Augusta, Cowell and fly in, fly out.

Overview of the town of Whyalla. Picture: Ben Clark

Tom Koutsantonis during a visit to Whyalla last year. Picture: Ben Clark

The cuts come as the steelworks suffered another setback on Thursday – just days after steel production resumed following a four-month outage – with a minor fire breaking out and affecting operations throughout the day.

A GFG spokeswoman said the fire was caused by a power outage on Thursday morning, but the impact had been “minimal”.

“A power outage caused a minor fire today which was extinguished quickly and posed no risk to workers,” she said.

“There has been minimal impact to steelworks equipment with most of the plant back in operation soon after and the rest will be back late afternoon.”

Local MP Eddie Hughes said the jobs decision had rocked the local community.

“It’s tough whenever anyone loses a job, but even harder when there are families that are dependent on that income,” Mr Hughes said.

“People have mortgages to pay and families to look after so none of this is easy.”
Opposition Energy and Mining spokesman Stephen Patterson called on the government for greater transparency on the future of Whyalla.“It really makes a perilous situation in Whyalla even more uncertain,” Mr Patterson said.

“We are calling for more transparency from the government, when did they know about these job losses, what did they know about them and, importantly, how are they going to help the people of Whyalla.

“It’s not just the workers themselves, it’s their partners, it’s their kids.

“We have seen an exodus of families leaving Whyalla, we don’t want to see that again and we want to know what the government is doing.”

The decision comes as GFG Alliance brought forward its plan to scale down hematite mining and transition to magnetite.

It’s understood some workers would be redeployed, under the plan.

Mayor Phill Stone said the move to magnetite mining would provide a much-needed shot in the arm for Whyalla.

“We were on a bit of a high with the steel furnace back on, this just takes it back a little bit.,” Mr Stone said.

“We have the best of the best magnitude on our door step, which is the future of steel making, so we’re hopeful that will help things.”

In May last year, it was revealed more than 50 contractors employed across GFG Alliance’s SA mining operations would lose their jobs as the company strived to meet its carbon neutral deadline and wind down its hematite mine operations.

A GFG spokeswoman said the company was “moving forward on its journey to be carbon neutral by 2030”, and focusing on its magnetite reserves, a core material in producing green steel and iron.

Head of GFG Sanjeev Gupta at the steelworks in Whyalla. Picture: AAP Image/David Mariuz

The latest reports of job cuts comes after GFG Alliance chief executive Sanjeev Gupta met with the state government last week amid growing concerns over the town’s steelworks future.

Mr Gupta visited Whyalla on Thursday following a four-month furnace shutdown, then on Friday met with members of the government including Mr Malinauskas.

“We have heard good news emanate from the steelworks over the course of the last 48-72 hours with steel now coming out of the blast furnace, which is a good outcome, but there’s still a long way to go,” the Premier said.

GFG has also cautioned there is a long way to go before the plant is “stable and secure”.

When asked if the State Government would intervene in the future of the steelworks, Mining Minister Tom Koutsantonis told FIVEAA on Thursday morning: “We will not let it fail. It’s too big to fail.”

Meanwhile, Minister for Employment and Workplace Relations, Murray Watt said he expected to see “a lot more” job losses under a Coalition government, and that the federal government would work with their state counterparts around the issue.

“I have seen those reports about those impending job losses in Whyalla, and of course, our hearts go out to all of those workers who are in danger of losing their jobs,” he said.

“We’re likely to see a lot more of these kinds of job losses in communities like Whyalla if we see Peter Dutton walking away from manufacturing just like he did previously when they shut down our car industry.

“We will inevitably be working with the South Australian Government and the local community around these job losses – it’s a relatively large number for a community of that size.“

The Advertiser contacted Golding Contractors, but they did not respond.

Originally published as More than 250 jobs at GFG Alliance-linked contractor Golding in Whyalla set to be axed