KordaMentha – the court-appointed administrator of manufacturer OneSteel – has permanently shuttered Whyalla Steelworks’ blast furnace for safety and commercial reasons, supporting efforts to sell the plant.
KordaMentha paused Whyalla’s blast furnace in April and worked to bring it back online for five months. “[But] it is no longer sustainable to continue [furnace] recovery [work],” the administrator said on 14 September.
Hundreds of workers – including around 500 employees and 100 contractors – will lose their jobs because of the furnace closure. “Our immediate priority is to support affected [staff], provide clarity [around] options, and engage … with employees, unions, and [others],” joint administrator Sebastian Hams said.
The South Australian (SA) and Federal Governments have created an A$10 million job transition package to support Whyalla workers, multiple ministers said in a joint statement. They stood up the Whyalla Worker Transition Centre, on 14 September, to offer training, financial information, career support, and wellbeing support to workers.
“Our focus is on supporting workers now while creating the conditions for a new owner to invest in a stronger, more sustainable future for Whyalla,” Federal Industry Minister Tim Ayres said.
The Federal and SA Governments have co-funded Whyalla support packages before. They jointly announced A$2.1 billion in financial packages to support the plant, its workers, and small-scale creditors over 2025.
GFG Alliance – a Sanjeev Gupta-owned network of manufacturers – operated OneSteel until the SA Government forced it into administration in February 2025 over A$1.3 billion of debts. Months later, in June 2025, KordaMetha opened a sales process for the steelworks.
The administrator has shortlisted two bidders for the plant, Ayres and SA Premier Peter Malinauskas said on 27 May. “[Either bidder will deliver] a long-term, modern, low-emission sovereign steelmaking business [at Whyalla],” Malinauskas said.
Australian producer M Resources and Indian manufacturer Jindal Steel are the two bidders for the plant, according to reporting from the Australian Financial Review. M Resources has partnered with hydrogen developer Hazer to develop a low-carbon Whyalla bid, it said in December 2025.
KordaMetha’s blast furnace closure comes weeks after the GFG Alliance-owned Liberty Bell Bay smelter – Australia’s only ferro-alloy plant – entered liquidation on 3 August. GFG Alliance halted production at Liberty Bell Bay in May 2025 because of ore supply issues, Tasmanian Industry Minister Eric Abetz said at the time.
By Avinash Govind