Fears hundreds of jobs in Whyalla set to be axed

Embattled Whyalla is bracing for another financial blow, with reports up to 350 jobs will be cut by a local contractor.

There are reports that hundreds of jobs are expected to be cut by Whyalla-based mining contractor Golding, which has links to the steelworks’ owner GFG Alliance.

The ABC has reported management for Golding met with workers on Wednesday to inform them that up to 350 jobs would be lost.

It is believed the company was bringing forward its planned ramp-down of hematite mining in the Middle Back Ranges.

Overview of the town of Whyalla. Picture: Ben Clark

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

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.”

Originally published as Fears hundreds of jobs in Whyalla set to be axed