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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2025-05-14 Daily Xml
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Whyalla Steel Works (Port of Whyalla) Amendment Bill

Introduction and First Reading

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (16:17): Obtained leave and introduced a bill for an act to amend the Whyalla Steel Works Act 1958. Read a first time.

Second Reading

The Hon. A. KOUTSANTONIS (West Torrens—Minister for Infrastructure and Transport, Minister for Energy and Mining) (16:17): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The Bill I am introducing today seeks to clarify matters regarding parcels of land for which OneSteel is the registered proprietor for the purposes of operating the Port of Whyalla.

It amends the Whyalla Steel Works Act 1958, formerly the Broken Hill Proprietary Company's Steel Works Indenture Act 1958, which approves and ratifies an Indenture between the State of South Australia and OneSteel relating to them operation of its steel works in Whyalla.

The importance of pit to port operations is a key feature of the Act and Indentures that apply to OneSteel. The Indentures require consent of the State for the transfer of rights, obligations, powers, benefits and privileges conferred on OneSteel by the Indenture.

The State has never granted a consent to OneSteel to enter a lease or any other form of unregistered interest with any party relating to the land housing the Port of Whyalla.

OneSteel is currently in voluntary administration, with KordaMentha appointed the voluntary administrators.

The Administrators have advised the State of a purported lease agreement granted by OneSteel to Whyalla Ports.

The Bill has been drafted out of an abundance of caution to clarify the fact that such a purported lease that was entered without the State's consent is void, and to make it clear that the purported lease agreement granted by OneSteel to Whyalla Ports never had legal effect from the beginning with the effect that that and any other unregistered interests in the prescribed land entered without the State's consent are extinguished.

The Port of Whyalla is essential for the Whyalla Steel Works operations. Iron ore mined by OneSteel is exported via the Port and OneSteel receives key supply shipments from the Port including coking coal, dolomite and limestone (all required for steel production).

The Bill also clarifies that the creation of an interest in the tramways, railway and other infrastructure constructed on the port facilities, other than by and for OneSteel, is void and that the infrastructure forms part of the land and is not personal property.

This reflects the terms of the Indentures, which vest in OneSteel alone the rights to construct tramways and other infrastructure at the Port of Whyalla.

Nothing in the Bill prevents OneSteel or any prospective purchaser from entering into contractual arrangements in respect to the Port of Whyalla in the future, subject to the Indentures and relevant consent requirements.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

Part 2—Amendment of Whyalla Steel Works Act 1958

3—Insertion of sections 6A and 6B

This clause inserts new section 6A into the Act. The new section clarifies the effect of a contravention of either of the Indentures in relation to an assignment or purported assignment of certain interests by the Company.

Specifically, the section makes it clear that the assignment or purported assignment is void and of no force or effect unless the State granted consent to the assignment prior to the Company assigning the interest.

The new section provides a regulation making power to exclude certain assignments from the operation of the section.

The clause also inserts new section 6B into the Act, which provides that no compensation or other payment is payable in relation to the operation of new section 6A or new Schedule 4 as inserted by this measure.

4—Insertion of section 21

This clause inserts a general regulation making power into the Act, in particular providing a power for saving or transitional regulations to be made where the Act is amended.

5—Insertion of Schedule 4

This clause inserts new Schedule 4 into the Act.

The new Schedule clarifies the status of the lease identified in clause 2 of the Schedule, namely by providing it is void and of no effect, and always to have been void and of no effect.

The Schedule makes further technical provision in respect of its application.

Clause 4 of the Schedule makes similar provision in relation to certain interests in infrastructure on or relating to the land to which the lease relates and the Port of Whyalla, including tramways, railways, jetties, wharves and so on.

Clause 6 of the Schedule clarifies the effect of the Schedule on future dealings in the land to which the Schedule relates.

Debate adjourned on motion of Mr Patterson.

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