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Legislative Council - Fifty-Fifth Parliament, First Session (55-1)
2024-05-01 Daily Xml
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Whyalla Steelworks

The Hon. F. PANGALLO (14:35): I seek leave to make a brief explanation before asking the Minister for Primary Industries and Regional Development, representing the Minister for Infrastructure in the other place and the Premier, a question about the Whyalla Steelworks.

Leave granted.

The Hon. F. PANGALLO: On 9 April, I asked the minister a question about the steelworks amid growing concerns in Whyalla about its future. While I await a formal response from the minister, further doubts are being raised about the steelworks, which is the lifeline of the Iron Triangle town, employing about 1,000 workers.

Much of this uncertainty centres around the financial stability of the steelworks' owner, Sanjeev Gupta's company GFG Alliance, which has been forced to refinance $5 billion in funds previously extended by its former chief financier Greensill Capital, following that company's spectacular collapse. Administrators for Greensill Capital have warned they could attempt to seize assets from Mr Gupta to recover nearly $900 million in unpaid funds.

I am reliably informed the arc furnace, the current blast furnace, has been out of action for almost a month and might be turned back on sometime this month, which is more than eight weeks after breaking down. I am also reliably informed there are growing concerns within the government about the impact that Mr Gupta's global financial woes is having on the steelworks, but they have graver concerns about its future and that of Whyalla should Mr Gupta be forced to walk away from business, with another buyer highly unlikely to be found in the short term.

It is my understanding that no steel has gone into the rolling mill for more than a month. My questions to the minister are:

1. What reassurances can the minister give to South Australians that the steelworks' short-term future is secure?

2. Can he confirm that government executives are demanding briefings with company management twice a week to be kept updated on the steelworks' operational and financial issues?

3. Has the government given Mr Gupta the $50 million he has been asking for for several years to help him with his financial problems?

The Hon. C.M. SCRIVEN (Minister for Primary Industries and Regional Development, Minister for Forest Industries) (14:37): I thank the honourable member for his question. I have been provided with some information by the Minister for Infrastructure in the other place that addresses some of the points that have been raised.

I am advised that the blast furnace remains operational, albeit at a reduced capacity. I am advised that nine tuyeres—which are nozzles around the tap hole used to force natural gas and air into the furnace to facilitate a slow return to production temperature—are now online. I am advised that once 12 are online the blast furnace will be able to return to normal operations, which is expected in early May.

Once that occurs, the temporary roster changes that have been in effect since 22 April can revert back to normal. In the meantime, GFG are managing impact on staff through leave arrangements, training attendance and reassignment to other parts of the steelworks, which I understand has been accepted by the Australian Workers' Union.

The government is continuing to monitor the situation closely. It is critical that the blast furnace returns to normal production as soon as possible and the ageing plant is maintained until the new electric arc furnace (EAF) is commissioned.

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