Whyalla Steelwork repairs still under a cloud as Peter Malinauskas expresses concern

Peter Malinauskas says the whole country should be worried about Whyalla Steelworks as its future is still on knife-edge, despite some recent positive news.

South Australia’s premier has conceded that the Whyalla Steelworks is a major concern for him in the new year despite recently receiving a positive update about the furnaces.

Premier Peter Malinauskas said he received a major update relating to Whyalla’s steelwork furnaces, which indicated they might be close to resolving their long-term issues.

“This isn’t out there publicly but I got an update on this yesterday morning,” he told FIVEAA on Thursday.

“Without going into all the technical details of the blast furnace because it is quite the science but we’ve now got 10 tuyeres (furnace nozzles) open, which is actually a really good sign for the blast … this is better than it’s been for some months.”

This comes after the blast furnace cooled too much during a two-day maintenance shutdown in mid March, which caused blockages within the furnace’s wind tuyeres.

Premier Peter Malinauskas at the Whyalla Steelworks early last year. Picture: Ben Clark

The Whyalla Steelworks site during a visit in February 2024. Picture: Ben Clark

However, despite some good news, Mr Malinauskas said his main concern in the new year is the future of the steelworks.

“There is absolutely no denying the fact that one of the things I’m most worried about, to speak plainly, is how we get the steelworks back onto a financially sustainable footing.

“And that’s something that will occupy a lot of my time in the early months of this year.”

This is a concern, Mr Malinauskas believes should be shared more broadly.

“Frankly, I think the whole country should be (worried) because I think it’s completely unsustainable and totally unsatisfactory for us to be a nation – an island continent nation – that produces as much iron ore as we do but not having the capability to produce our own steel domestically,” he said.

Mr Malinauskas made it clear that there already is “money on the table” for GFG Alliance “but it’s got conditions attached to it”, particularly providing the government a plan for the future of the steelworks.

The steelworks are a privately-owned business – owned by the GFG Alliance – which prevents the government from fully intervening.

A GFG Alliance spokesman said there were taskforces and plans in place to ensure works at the Whyalla site could resume within days.

“The Whyalla Steelworks’ Back to Black Taskforce has been focussed on a three-point plan to restart the blast furnace, move to full production across the plant and achieve financial stability,” the spokesman said.

“Following a number of unanticipated setbacks over the last few weeks, our dedicated and hardworking team remained focused throughout, and we are now in a position where steelmaking is expected to resume in the next few days barring any unforeseen disruptions.”

However, Opposition leader Vincent Tarzia believes the government could do more despite the private ownership.

Liberal leader Vincent Tarzia thinks the state government could be doing more about the Whyalla Steelworks. Picture Dean Martin

Mr Tarzia told The Advertiser “there are several levers that the government could pull” to speed up the progress at the steelworks.

“There is a significant lack of urgency from Peter Malinauskas and Tom Koutsantonis when it comes to the Steelworks,” Mr Tarzia said. “There are several levers that the government could pull to ensure this vital industry stays alive – yet we’re seeing no significant progress.

“We cannot afford more delays or false reassurances.

“Whyalla urgently needs a clear, transparent plan for the future of its steelworks to secure jobs and protect the region’s economy.”

Originally published as Whyalla Steelwork repairs still under a cloud as Peter Malinauskas expresses concern