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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2024-05-01 Daily Xml
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Whyalla Steelworks

The Hon. D.J. SPEIRS (Black—Leader of the Opposition) (14:16): My question is to the Minister for Energy and Mining. What impact, if any, will the issues described by the minister relating to the Whyalla Steelworks have on the planned purchase and installation of the $500 million electric arc furnace and associated infrastructure? With your leave, sir, and that of the house, I will explain.

Leave granted.

The Hon. D.J. SPEIRS: In a media release on 25 February 2024, the GFG Alliance stated that they had secured a $50 million grant committed by the South Australian government pending approval for use towards the electric arc furnace.

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (14:17): I don't think it will have any impact on the electric arc furnace. They are two separate issues. Obviously the electric arc furnace is something that GFG and Danieli are working very closely with to try to secure its engineering and construction. That work is being done in Europe. GFG have, I understand, some other electric arc furnaces in operation around in its portfolio. I am very keen to see those operations.

Obviously, I know from speaking with GFG that they have done their forward orders of coke and they are planning for resumption of steel manufacturing. They are two separate processes, so obviously with the closure of the coke ovens at Whyalla, their trajectory is towards an electric arc furnace ultimately with direct reduction iron facilities there later. I am very keen to meet with Danieli and get a better understanding of exactly how far away the electric arc furnace is, but I don't think the two are linked.

The blast furnace technology is something that is well established and well known. We are keen to get that blast furnace back up to temperature to get steelmaking, steel pouring, done again and steelmaking resumed so that we can get the steelworks back up to speed. The biggest implication here so far has been a reduction in shifts at Whyalla, which means that working families in Whyalla are not getting the income they would normally have gotten. That has been the biggest consequence of this shutdown and maintenance. In terms of its impact on any future upgrades, they are two separate issues, I am informed, and they should not impact on each other.

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