Premier Peter Malinauskas in talks with five steel firms about Whyalla green iron ‘opportunity’

Premier Peter Malinauskas has revealed he is in talks with five steel firms about a green iron opportunity at Whyalla.

• ‘Diabolical’: Whyalla residents on edge as Steelworks sparks fly

Premier Peter Malinauskas has listed five steel firms he has personally held talks with as he declares Whyalla steelworks’ ownership “second” to his long-term green iron plan.

Speaking in parliament on Wednesday, Mr Malinauskas said the government had been in regular discussions with steelworks operator GFG Alliance and “we wish them every success”.

Asked by the Opposition if there had been talks with other firms to run the steelworks, Mr Malinauskas said these had occurred with “a range of companies” about a government green iron and steel strategy centred on Whyalla.

He then listed steelmaking firms he had spoken to personally about that strategy, naming BlueScope, Nippon Steel Corporation, POSCO, Thyssenkrupp and Tata Steel.

“Know this, that the owner of the steelworks is an important consideration, but it’s one that is second to the fundamentals economically for the long-term future of the state,” Mr Malinauskas said.

“And whoever owns the steel works or whoever is investing in a green iron opportunity will be a significant partner to whoever is occupying the Treasury benches (in government).

“We have that great privilege at the moment, and that is why we are actively working with all

parties at every available opportunity.”

Premier Peter Malinauskas speaks during parliamentary question time. Picture: NewsWire / Roy VanDerVegt

Mr Malinauskas in June unveiled a Green Iron and Steel Strategy, centred on the government plan for a $593m hydrogen power plant at Whyalla to fuel the steelworks.

The Advertiser on Tuesday revealed the government was seeking urgent advice on its exposure and role should GFG Alliance’s embattled Whyalla steelworks and iron ore operations be placed in voluntary administration, following the blast furnace going offline for the second time in a year last week.

Mr Malinauskas on Wednesday said the government was “planning for all possibilities” and had raised concerns about the steelworks with Prime Minister Anthony Albanese.

“But we have no reason to discount what GFG has said publicly. They’re very confident about their position and we welcome that. But we also have to make sure that we are treading with a degree of caution,” Mr Malinauskas said.

The Whyalla steelworks blast furnace cast house floor, which is currently offline. Picture: Supplied

Treasurer Stephen Mullighan told state parliament on Tuesday that GFG had been in arrears on royalty payments to the state government for “several weeks” and this was “a serious issue for the state”.

Opposition Leader Vincent Tarzia demanded the government reveal the amount owed, saying basic information in the public interest was not being released.

Federal Trade Minister Don Farrell, also the deputy government Senate leader, on Wednesday said: “As a government, we want to see steel making continue and, of course, all of those jobs being protected. We will, of course, continue those discussions between the Prime Minister and Premier,” he said.

Originally published as Premier Peter Malinauskas in talks with five steel firms about Whyalla green iron ‘opportunity’