Analysis: Whyalla steelworks ‘saviour’ Sanjeev Gupta’s history of grand promises and dashed dreams | Paul Starick

British steel magnate Sanjeev Gupta is an enigma who has left South Australia with a series of grand promises and dashed dreams, writes Paul Starick.

The enigma that is Sanjeev Gupta is dramatically revealed by two episodes just before Christmas, six years apart.

Back in December, 2018, the British steel magnate staged a “big reveal”, at which he announced he would build one of the world’s biggest steelworks at Whyalla.

Flanked by the-then Prime Minister Scott Morrison and Premier Steven Marshall, Mr Gupta revealed his plan to build a “next-gen, mega-steel plant”, aiming to pump billions into the state economy and quadruple Whyalla’s population.

The-then Prime Minister Scott Morrison with the-then Premier Steven Marshall and Sanjeev Gupta in Whyalla in 2018. Picture: Tom Huntley.

Six years later, just before last Christmas, Mr Gupta and wife Nicola won a legal battle to upgrade their Sydney harbourside mansion, adding a covered pool, a sauna, spa, yoga room, cinema and even a whisky room to the eight-bedroom, five-bathroom Potts Point home he bought in 2019 for about $34m.

At the same time, the Whyalla steelworks blast furnace had been shut down for months and contractors were owed tens of thousands of dollars.

The grand plans of 2018 had effectively turned into the red dust swirling around the steelworks.

After years of hope and dashed dreams, Whyalla was on its knees. Mr Gupta, who was hailed as the saviour of Whyalla after in 2017 rescuing the steelworks from administration, was nowhere to be seen.

Sanjeev Gupta at Whyalla Steelworks in 2017. Picture: AAP Image/David Mariuz

The saviour of Whyalla had plunged the steelworks and the city to the brink of damnation.

By January 9, though, Mr Gupta was touring Whyalla after the steelworks restarted partial production when the four-month blast furnace shutdown ended.

At the time, Premier Peter Malinauskas said there was still “a long way to go” in shoring up the future of the Whyalla steelworks – but the resumption of steel production at the plant was a positive step.

A month on, though, and Mr Malinauskas issued a public message to the people of Whyalla, in which he demanded Mr Gupta and GFG pay creditors.

“The time is now for Mr. Gupta to front up, pay his creditors but also demonstrate his capacity to invest in the steelworks for the long term,” the Premier said in an Instagram message posted on Sunday night.

Prime Minister Anthony Albanese and Premier Peter Malinauskas during a visit to the Whyalla steelworks in September, 2023. NCA NewsWire / David Mariuz

But Mr Gupta was nowhere to be seen. Earlier on Sunday, there was no sign of him at his “Bomera” mansion in Potts Point – the one he fought so hard to upgrade. An unnamed occupant could not say when he would return.

Mr Malinauskas on Monday said the state government had “plans in place to account for every eventuality”.

“That’s what I know. You know, when you’re in positions of responsibility, no point in worrying about what you can’t control, and I can’t control Mr. Gupta,” he said.

“ What I can control is the plans that we have in place within government to respond readily, and powerfully, should the circumstances demand it.”

Mr Gupta, who faces his own debt burden after the 2021 collapse of his financier, Greensill, revealed last October that the Whyalla steelworks and iron ore operation was being propped up to the tune of almost $1m per day.

Despite years of failed promises and dashed hopes, Mr Gupta is clinging on in Whyalla. The gaping open questions are for how long and at what cost to the steel city.

Originally published as Analysis: Whyalla steelworks ‘saviour’ Sanjeev Gupta’s history of grand promises and dashed dreams | Paul Starick