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[BUSINESS] · Australia · 5 sources

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Whyalla steelworks blast furnace closure to result in hundreds of job losses

Administrators and the South Australian government have abandoned efforts to restart the aging blast furnace at the Whyalla steelworks, leading to significant job losses. The decision follows the determination that the 60-year-old coal-fired furnace is beyond repair due to years of under-investment.

Approximately 500 employees and 100 labor-hire contractors are expected to lose their jobs, though about 1,200 workers will remain employed in other areas of the site, including the nearby port and iron ore mines. To assist those affected, the state and federal governments have announced a joint $10 million support package.

The facility was placed into administration in February 2025 after its former owner, GFG Alliance, incurred substantial unpaid debts. While the blast furnace will remain shut, the sale process for the steelworks continues, with contenders including Jindal Steel and M Resources. Up to $1.9 billion in combined state and federal funding has been earmarked to transition the site into a modern, low-emission facility if a new owner is secured.

Entities

GFG Alliance · Jindal Steel · KordaMentha · Peter Malinauskas · Whyalla steelworks

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