Whyalla community cautiously optimistic about steelworks sequel | ABC NEWS

Added: 2026-06-01

[00:00:01]A promise of hope for a city looking for certainty. The Premier's announcement that two final bidders have been chosen in the steelworks sale process.

[00:00:10]>> Those two are M Resources and Jindal.

[00:00:14]>> The ABC has spoken with Matt Latimore, the founder of Queensland-based mining company M Resources.

[00:00:20]>> Yeah, this is about securing sovereign steel making in Australian hands.

[00:00:26]>> Federal and state governments have promised 1.9 billion dollars to upgrade the plant as an incentive to find a buyer. The financially stricken business was placed into administration in February last year, the second administration for the steelworks in under a decade.

[00:00:42]M Resources says, if successful, it will replace Whyalla's aging blast furnace, which has been offline since early April, with a new electric arc furnace and will grow mining operations.

[00:00:54]>> That's a huge opportunity to expand that iron ore with the using the existing infrastructure that's in place there to do more.

[00:01:04]>> While Jindal Steel is M Resources' major threat, BlueScope, Australia's largest steelmaker, can also make a final offer before the sale. The ongoing shutdown of the blast furnace is adding an extra layer of complexity to the sale process, but long-term contingencies are being put in place to make sure that steel can continue to be made in Whyalla even with the furnace out of action.

[00:01:28]>> As long as we've got orders and they can find a supplier of billets and slabs, then the rolling mill still will produce, which is, you know, the rail and structural steel that we make.

[00:01:38]>> So, while potentially importing iron could keep steelmakers employed, blast furnace workers face greater uncertainty.

[00:01:45]>> Everyone's quite clear that modernization does mean less people on the ground.

[00:01:50]It's just a fact of life.

[00:01:52]>> Those numbers are still to be totally refined in terms of exactly how many workers will be required for the transition.

[00:02:02]>> So far, the steel works administration has cost in excess of $700 million, and a further top-up is likely in the state budget. Contractor Chris Feuster says the community needs to be kept better informed.

[00:02:14]>> Where's the information that I can hang my hat that something good's going to come out of this?

[00:02:20]>> But others remain more hopeful.

[00:02:22]>> This time we've got governments, two governments, state and federal, aware of the importance of steel making within Australia.

[00:02:30]Aware of how Whyalla must be saved, not just for Whyalla, it's for the the benefit of the whole nation.

[00:02:38]>> A new owner is expected to be announced by the end of the year.

[00:02:42]James Wakelin, ABC News.