Arrium

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (14:11): I seek leave to make a ministerial statement.

Leave granted.

The Hon. A. KOUTSANTONIS: I rise to provide a house with a further update on the ongoing sales process for the Arrium Group. Following 14 months in administration, last week, deed administrators, KordaMentha, selected the Korean consortium as the preferred bidder from a short list of two candidates to proceed to the next stage of the sales process. The consortium is headed by Newlake Alliance Management and JB Asset Management and is supported by Korea's POSCO, one of the world's major steelmakers. The proposed investment by Newlake Consortium aims to make Whyalla the first city outside South Korea to adopt the innovative FINEX process for steelmaking.

Last year, with Greg Hunt I travelled to Pohang to witness firsthand the state-of-the-art FINEX facility. It was easy to see the potential that this transformational steelmaking process offers Whyalla and, indeed, the nation. I have offered my congratulations on behalf of the state government to the South Korean consortium. While we welcome this substantial milestone, there is still some significant work that needs to be completed, including approval by Arrium's committee of creditors. I will be meeting with the federal industry minister, Mr Arthur Sinodinos, early next week to negotiate a joint support package to allow the finalisation of the sale.

The workers at Arrium, their suppliers and the community at Whyalla have been through a great deal in the past 18 months, with uncertainty leading up to the company entering administration and then this long drawn-out sales process. I am confident that this latest milestone will bring some relief to a community in Whyalla that has shown its resilience, its patience and its strength throughout this most challenging time.

This government will continue to work with the administrator, unions, Arrium workers and the federal government to secure a speedy and successful outcome for the people of Whyalla and Australia's steel industry. I look forward to further updating the house with more information as the process to secure the jobs of the future of Whyalla's workforce draws closer to a conclusion.