New announcement on Whyalla steelworks and mine as Premier Malinauskas jets into the steel city

The Premier and federal industry minister are in Whyalla this morning to make a new call on the ailing steelworks.

Premier Peter Malinauskas stands on Hummock Hill Lookout in Whyalla, overlooking Whyalla Steelworks in February. Picture: Brett Hartwig

Premier Peter Malinauskas and the federal Industry Minister are flying to Whyalla on Tuesday morning to make an announcement about the city’s struggling steelworks as it continues to bleed taxpayers’ money.

Mr Malinauskas said the OneSteel Manufacturing steelworks and mine plunged into administration earlier this year was now in far better shape as several Australian and overseas potential buyers circled.

As administrator KordaMentha continued to pour millions of dollars into stabilising the business, the state government today confirmed an extra 75 workers were being employed at the steelworks.

Another $15m of taxpayers’ funds from a $2.4bn Whyalla steelworks and mine rescue package announced in February had been funnelled to 61 South Australian businesses owed money by former owner GFG Alliance.

Mr Malinauskas said Whyalla-based Avid Engineering was among recipients of the $100m assistance package.

In early 2025, Avid was down to five staff, with its owner drawing on personal savings to keep the business afloat.

It was now employing 27 full-time staff and 13 casual workers including former employees of GFG Alliance’s collapsed steel manufacturer Ferretti International.

Acting SA Premier Susan Close with Tony Angel from Avid Engineering. Picture: supplied

Market experts believed the Australian steel company BlueScope was in the box seat for sale discussions after being appointed as Whyalla steelworks and mine adviser when the GFG Alliance business was pushed into administration in February.

Mr Malinauskas, who would be in Whyalla with Industry Minister Tim Ayres for his first visit to the site, said suppliers and contractors were now in a “much better position for the future”.

“Whyalla has long been at the heart of South Australia’s industrial strength – and now it has the potential to deliver sovereign steelmaking for the long term,” he said.

“Only a few months ago, GFG was laying off workers and dozens of small businesses were doing the same, because they weren’t being paid.”

Legislation was also rushed through state parliament in May so the state government could wrestle control of the Whyalla Port from GFG Alliance to make it more attractive for sale.

The state and federal governments were currently spending $400m on funding the administrators and staff of the steelworks and mine, including paying BlueScope steel as an expert adviser and to cover general working capital.

Another $384m was set aside in the state budget for a potential six-month extension of KordaMentha’s administration.

Mr Malinauskas said recruitment was ongoing for further new roles at the steelworks, including in mobile maintenance and diesel mechanics.

Five apprentices were employed this year and recruitment has started to find 27 new apprentices across various disciplines to work with OneSteel Manufacturing from 2026.

Small businesses in Whyalla have also received support, with $570,000 in grants awarded to 57 businesses that had experienced a reduction in revenue due to the decline in activity at the steelworks.

“Australia’s steel industry is critical to the Australian economy and the community of Whyalla,” Mr Ayres said.

“There is real opportunity to manufacture iron and steel using Australia’s abundant ore and renewable energy to set up this industry and the Whyalla steelworks for the decades to come.”

Originally published as New announcement on Whyalla steelworks and mine as Premier Malinauskas jets into the steel city