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Premier Peter Malinauskas announces new law will ensure GFG Alliance has no Whyalla port control

Premier Peter Malinauskas says the state government is stepping in and will override the control of Whyalla port.

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

A new State Government bill is expected to override GFG Alliance’s control over the Whyalla port that is vital to operations at the struggling steelworks and mine.

Premier Peter Malinauskas said administrator KordaMentha lodged court action claiming GFG Alliance should have asked for consent from the State Government before it granted a port lease to another company under its control.

This had caused early problems for steelworks and mine operations, holding up important shipments being loaded and unloaded in the Whyalla region.

“Maintaining access to the Port of Whyalla is essential for the Whyalla steelworks operations,” Mr Malinauskas told parliament.

“Iron ore mined by OneSteel is exported via the port and OneSteel receives key shipments from the port including coking coal, dolomite and limestone – which are all required for steel production.”

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The move to introduce the Whyalla Steel Works (Port of Whyalla) Amendment Bill 2025 would lead to state consent being required for the transfer of rights, obligations, powers, benefits and privileges conferred on OneSteel.

The port at Whyalla steelworks. Picture: Dean Martin
The port at Whyalla steelworks. Picture: Dean Martin

This was expected to stymie court action underway and ensure KordaMentha could sell a well-functioning steelworks, mine and port package.

KordaMentha was appointed administrator of OneSteel Manufacturing that operates the steelworks and mine when the government forced the company into receivership three months ago over multi-million-dollars worth of unpaid bills.

Since then the state and federal governments have announced a $2.4bn taxpayer bailout with KordaMentha working toward getting a well-operating business on the market to produce steel.

It was believed there was significant interest from buyers.

“Without sovereign steel, we would rely on steel and capability from overseas amid an increasingly uncertain international climate and a national housing crisis,” Mr Malinauskas said in relation to the importance of introducing the bill.

“Sovereign steel is critical to our national interest and security.”

Court proceedings claimed Whyalla Ports was owned by Mr Gupta’s global GFG Alliance group and this had led to a bottleneck in the early days of the administration with several ships stranded in waters off Whyalla.

The port is also used by other mining companies in the region.

Energy and Mining Minister Tom Koutsantonis was expected to introduce the bill on Wednesday. Picture: Kelly Barnes
Energy and Mining Minister Tom Koutsantonis was expected to introduce the bill on Wednesday. Picture: Kelly Barnes

Energy and Mining Minister Tom Koutsantonis was expected to introduce the bill Wednesday that also ensured tramways, railway and other port facility infrastructure was part of OneSteel land.

He was expected to outline how the state had never granted OneSteel consent to enter a lease with any party relating to the land housing the Port of Whyalla, and any agreement had no legal effect.

Court documents revealed that the Whyalla steelworks administrator is pouring millions of dollars into the business to cover vital maintenance and buy critical new parts and materials.

Originally published as Premier Peter Malinauskas announces new law will ensure GFG Alliance has no Whyalla port control

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Original URL: https://www.thechronicle.com.au/news/south-australia/premier-peter-malinauskas-announces-new-law-will-ensure-gfg-alliance-has-no-whyalla-port-control/news-story/e65086011c193253e7311d0d8888c9fb