The Albanese Labor Government and Malinauskas South Australian Government are working together to build South Australia’s future with a multi-billion dollar package to save Whyalla Steelworks, support local jobs and encourage more investment into Australian made iron and steel.
Prime Minister Anthony Albanese, South Australian Premier Peter Malinauskas and Minister for Industry and Science Ed Husic announced the package on the ground in Whyalla today.
The Whyalla steelworks employs 1100 workers and supports more than 2000 indirectly.
Whyalla is critical to sovereign Australian steel. It’s one of only two Australian steelworks, produces 75% of Australian structural steel and is the only domestic producer of long steel products.
Steel from Whyalla helps Australia build and maintain its infrastructure – including railways, bridges, schools, hospitals, high-rise towers, transmission infrastructure and defence assets.
The Whyalla Steelworks is also critical for future ambitions for green steel manufacturing, which will be increasingly lucrative as the world seeks to decarbonise.
The funding will be delivered in three distinct parts: immediate on the ground support, stabilising the Steelworks and investing in the Steelworks’ future.
Immediate, on the ground support - $100 million
- Creditor Assistance payments ($50 million)
- Infrastructure upgrades ($32.6 million)
- Jobs Matching and Skills Hub ($6 million)
Stabilising the Steelworks - $384 million
- The State and Federal Governments are co-investing $384 million to fund the Whyalla Steelworks’ operations during administration. This funding will ensure workers and contractors will have ongoing work at the Steelworks and will continue to be paid.
Investing in the Steelworks’ future - $1.9 billion
- The State and Federal Governments will work with a new owner to invest in the upgrades and new infrastructure which will be vital to ensuring the Steelworks has a sustainable, long-term future.
This comes as the Albanese Government today announces a new Green Iron fund to boost green iron manufacturing and supply chains by supporting early mover green iron projects and unlocking private investment at scale.
A joint taskforce will also be set up to provide advice and expertise in the transition to a sustainable future.
The taskforce will engage with workers, the City of Whyalla, administrators and creditors to support a path forward.
The Commonwealth Government has earmarked up to $500 million of the Green Iron Investment Fund to support the longer term transformation of the steelworks. It will also make available substantial additional financing to partner with a future owner and operator to upgrade the facility and ensure a green steel future for Whyalla and South Australia.
The South Australian Government’s share will come from funding set aside for the Hydrogen Jobs Plan, which will now be deferred to prioritise securing the steelworks, as well as $50 million from the Whyalla Steelworks Operational Efficiency Improvements Fund.
Yesterday, the South Australian Government took action to secure the long-term future of the Whyalla Steelworks and placed the steelworks in administration.
The State has appointed KordaMentha as administrator.
Quotes attributable to Prime Minister Anthony Albanese:
"My Government is building Australia's future. And to do that, we need Whyalla steel.
“Whyalla steel has forged some of our country’s biggest projects – rail lines, airports and stadiums.
“That’s why today in partnership with the Malinauskas Government, we are delivering more than $2 billion ensure the future of the steelworks and support local jobs.
“My Government is building Australia’s future and backing Australian workers.”
Quotes attributable to the Premier of South Australia Peter Malinauskas:
“Locally-made steel is vital to South Australia and Australia’s future, and this unprecedented investment recognises the importance of the Whyalla Steelworks.
“I was never going to allow a taxpayer funded bail-out of GFG.
“Now that the Steelworks is no longer under the control of GFG, the State Government can partner with the Federal Government and make the long-term investments necessary to secure the future of Whyalla and Australian steel making.
“We are stepping up to provide immediate on the ground assistance for local workers and businesses, we are stabilsing the steelworks and we are setting the steelworks up for long-term prosperity.”
Quotes attributable to Minister for Industry and Science Ed Husic:
“Making more things here means making more steel in Whyalla.
“Today we are showing our commitment to a long-term future for Whyalla and Australian steel.
“Steel-making has provided spine to Australian industry for a century and it’s here to stay.
“We want a strong future for Australian steel making, Whyalla will help deliver that.”