GFG Alliance still in control of Whyalla Port putting into question whether ships will find berth

Uncertainty remains over access to Whyalla’s struggling deep-sea port with ships left anchored and unable to load.

Ships are unable to access Whyalla Port with GFG Alliance still in control of the operation. Picture: Brett Hartwig

Ships are still hovering in waters near Whyalla waiting to access its struggling deep-sea port as a cloud continues to hang over its future operation.

While the Whyalla Steelworks and mines owned by GFG Alliance’s OneSteel have been dramatically plunged into administration, the port used to export iron ore and copper concentrate is owned by another subsidiary.

Administrator KordaMentha did not respond to questions by deadline to explain how ships would now begin to “flow freely” after being blocked in past weeks from using the port when contractors operating the site were not paid.

Whyalla Port has been exporting iron ore since 1903. Picture: Brett Hartwig

A spokesman responded to questions put to Energy and Mining Minister Tom Koutsantonis asking for clarification around the continued ownership of Whyalla Port by GFG Alliance’s subsidiary Liberty Primary Metals Australia, a company not in administration.

When asked whether the subsidiary Liberty Primary Metals Australia could stop access to the port he said OneSteel, the company in administration, owned the land at the port and “has contractual arrangements with Whyalla Ports for the operation of the port”.

“The administrator is working to ensure that materials can flow in and out of the port to sustain the ongoing operations of the steelworks,” the spokesman said.

Last week when asked about the challenge facing ships stranded in Whyalla, Mr Koutsantonis told parliament that “I suspect now that OneSteel Manufacturing is in administration and the administration is fully funded, access to the port should flow freely”.

A $2.4bn government funding package was announced to support Whyalla and its crisis-ridden steelworks and mines after GFG Alliance was spectacularly ousted.

KordaMentha confirmed that partners Mark Mentha, Michael Korda and Lara Wiggins had been appointed as administrators of the steelworks and the firm intended to continue the steelworks and mining operations.

Whyalla Port has been exporting iron ore since 1903 and has two mobile harbour cranes, it has an inner harbour, outer harbour and offshore transhipment points.

Peak Iron Mines reportedly has been shipping iron ore coming from its Peculiar Knob mine south east of Coober Pedy to the Whyalla Ports since 2020 but did not respond to questions from The Advertiser.

BHP is understood to occasionally use the port to export copper concentrate but has not been impacted by challenges at the port.

Opposition leader Vincent Tarzia was waiting for more detail about an upcoming creditors meeting about how much those owed money by the steelworks and mines owners would be paid.

Creditors are owned significant funds from work at the mines that were operated by GFG Alliance subsidiary OneSteel Manufacturing including the Middleback Ranges operation of Iron Baron, Iron Knob and South Middleback Ranges mine sites – where hematite and magnetite iron ore are railed and piped to Whyalla.

KordaMentha is also now overseeing the Ardrossan Dolomite Mine that supplies dolomite flux to the Whyalla Steelworks.

Originally published as GFG Alliance still in control of Whyalla Port putting into question whether ships will find berth