Ships stranded at Whyalla wharf as steelworks owner Sanjeev Gupta fails to pay contractors

Fed up locals have their say on GFG Alliance’s promise to balance the ledger as the Premier warns of a new problem threatening to spill over.

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Whyalla businesses say they won’t believe Sanjeev Gupta’s promise to get things back on track until the GFG Alliance chairman “shows (them) the money”.

It comes as premier Peter Malinauskas warned Whyalla steelworks’ financial problems are spilling onto the local wharf leaving numerous ships stranded in Upper Spencer Gulf with some contracted port workers not being paid.

Mr Gupta told The Advertiser the steelworks is turning over $13m-$14m per week and hoped the operation would break even by the middle of the year.

Maaric Industrical Services owner Chrys Press was angered by Mr Gupta’s latest announcement saying “it’s a stalling tactic” and that the community had heard it all before.

“We should have people on the steps of parliament every weekend making noise,” the Whyalla business owner said.

“We’ve let government off the hook, we’ve let Gupta off the hook and there’s a lack of leadership, this is no different, until we actually see something happen we won’t believe it.”

Mr Press’s company cleans Whyalla steelworks’ protective clothing and is owed money that was supposed to be paid by the end of last month – and “we’ve lost 70 per cent of our industrial work due to job losses and business closures”.

GFG Alliance owner Sanjeev Gupta. Picture: Brendon Thorne/Bloomberg via Getty Images

“The impact on Whyalla has been enormous and it’s far from over,” he said.

Whyalla local Chris ‘Fewy’ Fewster, who found out his grandson was let go from Fenner Dunlop today, said Mr Gupta’s latest pledge to break even by the middle of the year was just “smoke and mirrors”.

“He’s done a lot of talking and not a lot of action,” Mr Fewster said.

“He should put his money where his mouth is and stop playing games.”

Mr Fewster said the latest conversation about the steel mill surviving ignored Mr Gupta’s earlier promise to have the town thriving.

“The bottom line it’s not just about the steelwork surviving, it’s about the community surviving,” he said.

“It’s also not just about breaking even - (Mr Gupta) was meant to be investing in this big new green steel project.

“He needs to be in a position to invest in his project, not just tread water.”

The Premier’s meetings in Whyalla on Monday revealed companies operating in the region are struggling after losing vital access to the local wharf operated by Whyalla Ports Pty Ltd, a subsidiary of GFG Alliance.

Whyalla Mayor Phill Stone. Picture: Dean Martin

“I’ve met with companies that are paying considerable amounts of money for ships to be sitting in the harbor that haven’t been able to get access to the port because some contractors at the port aren’t getting paid to do their work,” Mr Malinauskas said.

Mr Malinauskas declined to name third party companies impacted by unpaid contractors not working to keep the deep sea port operating but said discussions on Monday were focused on tackling the problem.

“I’ve been spending a bit of time today understanding the circumstances around the port because that’s important to GFG and it’s also important to other companies and it’s important to the state, ultimately we want to see product coming out of this port to other overseas markets to generate revenue for the economy,” he said.

The port specialises in handling mining commodities and equipment, and some companies used it to export products to overseas markets.

Over the weekend Mr Malinauskas met with Mr Gupta who has revealed his latest plan for reviving the steelworks and paying more than $300m in outstanding bills.

Mr Malinauskas also met with BlueScope Steel’s managing director Mark Vassella.

He said the government invited the steel company’s chief executive to the Liv Golf corporate suite along with other “parties that were there who have an interest in Whyalla”.

The Premier also met with Whyalla Mayor Phill Stone, businesses and union representatives on Monday.

Premier Peter Malinauskas stands on Hummock Hill Lookout in Whyalla, overlooking a ship at No.2 Ore Jetty at Whyalla Steelworks. Picture: Brett Hartwig

The Whyalla steelworks. Picture: Dean Martin

Mr Stone reacted with scepticism to Mr Gupta’s plan to pay outstanding debts through a line of credit and by selling coal interests interstate.

“I will be putting some more questions to GFG based on that statement,” Mr Stone said, adding that the Whyalla community was feeling “blase” about the announcement “because they have heard it all before”.

“The community here is just saying ‘show us the money’,” Mr Stone said.

Contractors and businesses urgently needed unpaid bills settled now and Mr Stone was concerned the sale of coal assets was complex and would take a long time.

However, while he understood the sentiment from some contractors and businesses wanting to see Mr Gupta removed as owner, he believed this approach could create more complex problems.

“What I do know is that small businesses, if they haven’t already collapsed they are facing collapse because they need that money,” Mr Stone said.

Opposition leader Vincent Tarzia also met with Mr Gupta on the weekend and learned of his plans to find new funds to pay unpaid bills.

He was concerned about the handling of the issue and the state government continuing to spend millions of dollars on its hydrogen plan that originally did not appear to hinge on the success of GFG Alliance.

The opposition intended calling for a select committee to be established during parliament this week to examine spending at the hydrogen SA office.

“They are trying to use him (Mr Gupta) as a scapegoat on hydrogen,” he said.

Originally published as Ships stranded at Whyalla wharf as steelworks owner Sanjeev Gupta fails to pay contractors