Whyalla steelworks future in doubt but residents determined to weather the storm

Whyalla is a city of hope and resilience despite the dark clouds of uncertainty surrounding the steelworks, which is the backbone of the northwest city’s economy.

Rob North has already made his Christmas plans, and it doesn’t include a trip away from his beloved hometown of Whyalla.

He plans on opening his wetlands cafe, Sumthin’ Tasteee, on December 25 for the first time in six years.

A Christmas banquet with all the trimmings for any and all in the town to join, free of charge.

He sees daily how tough his city is doing at the moment, the cost of living crisis aside.

In the six years since he started his cafe, Mr North and his wife Sam have grown it into the success it is today, cooking up 4000 meals a week with a turnover in the realm of $1.5 million a year.

His customers – predictably – are those whose employment revolves around the steelworks.

Right now, it’s tough and while Mr North is confident things will turn around, he fears what could happen between now and then.

Owners of the Sumthin' Tastee cafe Rob and Sam North near the wetlands in Whyalla SA. Picture: Ben Clark

Before the critical blast furnace comes back online, before workers start to get more hours, before speculation around GFG Alliance’s ownership of the steelworks resolves, one way or another.

Because the last time there was such doubt across the town, he lost mates. Young men, whose high incomes in the mines or at the steelworks gave them hope enough to buy a house with their family and live the good life that comes with earning a big – and reliable – pay packet.

“It was all the young kids who have gone out and got good jobs … earning over a hundred grand a year … go to the bank, buy a house for $300,000 or $500,000, buy a new Hilux, have a kid on the way, and then lose their job,” Mr North tells The Advertiser.

“When this happened last time there was a few of the younger lads who committed suicide.

“And this is a massive issue. They need to make sure their mental health is taken care of.

“So they need to make sure that there is counselling there for them, or something to help these guys.”

Night shot of the Whyalla Steelworks and smelter facility. Picture: Ben Clark

The Whyalla operations were previously placed in administration in April 2016 when the former owner, ASX-listed company Arrium, itself collapsed into administration.

GFG Alliance boss Sanjeev Gupta became the Steel City’s white knight, dragging it out of financial crisis and eventually clawing it back to profitability.

But the intervening months came with a heavy toll on the city. And Mr North is determined to do what he can to support his home.

Mr North says it’s a resilient city, one he doesn’t plan to leave any time soon and has full faith it will bounce back, but worries at the casualties before things once again climb out of the gulf.

The Whyalla Suicide Prevention Network was established in the regional city in October 2013, and is dedicated to supporting the health and wellbeing of the community.

Its public education and community development projects are designed to reduce the stigma around suicide and mental health, and promote connection and inclusivity.

Those involved in the network also proudly call Whyalla home – some for several decades who have seen the city’s economic highs and lows.

“Just ride the wave – that’s what it is about,” one network worker tells The Advertiser.

“(The speculation) affects the people working there. But we have got no control, we just have to wait and see.

“There’s plenty of help, and we have all the facilities here (in Whyalla).”

Mayor of Whyalla, Phill Stone at the Whyalla City Council (Civic Building). Picture: Ben Clark

Whyalla Mayor Phill Stone says he understands where the community angst stems from, but is unwavering in his belief that the latest big project promise will eventuate.

He also knows Whyalla has been promised big things before that never happened.

His regular briefings with GFG Alliance, he says, have reassured him that work is being done to get things on track.

“Yes we have got some glitches at the moment but in the long term, particularly around the hydrogen – and I have said this from the outset – hydrogen is going to make a difference,” he said.

“We are going to see potential developments based around that, and not just hydrogen but other developments that are keen to come to Whyalla.

“And I stand on it. That will be the biggest transformation in Whyalla since the steelworks long-products division that was built back in the 60s.”

Mr Stone, like many others, believes the steelworks will always be there, it just might have different owners.

He is equally confident that the long-awaited shovels on the hydrogen plant will be at work in the new year.

“I have said, very openly, I’m more than happy to be mayor in the middle of summer getting complaints from the residents that a northerly wind is bringing dust in over the city because that will mean they are actually on site,” he said.

“The people that have spoken to me about scepticism, I also use the analogy – forget about how important it is and how beneficial it is – think about it politically.

“You’ve got a state government who has put up money, is an election promise, they are intent on going down that path – they’re not going to let it fall over.

“If it was a third-party’s money that you were relying on then it’s a different story.”

Premier Peter Malinauskas this week told parliament “number of people within the Whyalla community who are concerned about the events that are unfolding within GFG and at the Whyalla steelworks”.

“The government in turn is making active inquiries and conducting some thorough policy work to contemplate how government may play a role to combat the challenges that are currently being experienced at the steelworks,’’ Mr Malinauskas said.

“It’s important for people to remember that the steelworks is a critical piece of industrial infrastructure – not for South Australia but for the country,” he told parliament.

Whyalla local Jeff Hardyman, 71, near the wetlands. Picture: Ben Clark

Former Newcastle man Jeff Hardyman certainly believes that.

He had planned four years in Whyalla but 15 years on, he has no plans to move on.

And his wife probably wouldn’t let him.

“The trouble is, it grows on you,” the 71-year-old says.

“The city is a beautiful city, we love it – it’s got the beaches, I go fishing, there’s businesses here and we just love it.

“We would not leave Whyalla. I think it’s the resilience of the people who have lived here all their lives.

“It’s a roller coaster effect.”

A veteran of steel cities, Mr Hardyman has lived the highs and lows of a single-industry town, but Whyalla has the metal to get through the latest lull.

“I’ve watched the ups and downs of steel cities where they’re the primary business, but it is the resilience of the people in the city that make it special.

“We have never seen it (resilience) anywhere else.”

Originally published as Whyalla steelworks future in doubt but residents determined to weather the storm