Whyalla Steelworks

The Hon. F. PANGALLO (15:02): I seek leave to make a brief explanation before asking the Minister for Primary Industries and Regional Development, representing the Minister for Energy and Mining in the other place, a question about the troubled Whyalla Steelworks.

Leave granted.

The Hon. F. PANGALLO: I note the government has woken up to the concerns of the steel city and is taking the entire cabinet there on 21 October to meet with various stakeholders and people in the town. Just to correct the Premier in his statement to the House of Assembly today, South Australia isn't the birthplace of the nation's steel industry, that honour belongs to Eskbank near Lithgow in 1901. BHP opened its mill in Newcastle in 1915, using South Australian ore, which was discovered as far back as 1840, but there was no serious steel production in Whyalla until 1941, not the 100 years as the Premier claims.

Sources have told me that the main furnace has been shut down again because 400 tonnes of quartz were incorrectly poured into the furnace. Experienced former and current workers at the plant, some with 20 to 30 years' experience, are questioning whether it was a serious computer error with the chemistry mix for the furnace, or whether it may have been an act of industrial sabotage, as this is the first time such an incident has occurred there in its history. On a normal day, anywhere between 80 and 100 tonnes of quartz might be poured into the furnace, but how did 400 tonnes get in there?

The industrial sabotage theory could have the potential for an insurance claim, and that under the indenture agreement GFG is unable to mine and export iron ore unless it's producing steel. However, if the furnace is unoperational, GFG can still export iron ore. Concerns have also been raised about increasing safety issues at the steelworks with workers reporting various injuries. My questions to the minister are:

1. Has the government asked GFG for an explanation as to what caused it to shut down the furnace, and for how long will the furnace be out of action?

2. Is the government aware of allegations of industrial sabotage?

3. Will the government direct SafeWork SA to conduct a workplace safety audit at the steelworks given workers' increased concerns over health and safety at the plant?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (15:05): I will refer the honourable member's questions to the relevant minister in the other place and bring back a response.