The formal sale process for Whyalla Steelworks and its associated mining operations has officially commenced, following strong preliminary interest from international steelmakers and consortia seeking to expand into low-emissions steel production.
The independent process is being led by administrator KordaMentha and sale advisers 333 Capital, and represents a critical milestone in securing a long-term, sustainable future for steelmaking in the South Australian town of Whyalla.
The move follows a major intervention earlier this year by the South Australian Government, which placed the steelworks into administration in February after ongoing concerns about operational viability under former owner GFG Alliance.
“Today’s opening of the sales process represents a critical step in securing the sustainable long-term future of the Whyalla steelworks – for Australia’s sovereign capability and for good jobs in the Whyalla community,” said Senator Tim Ayres, minister for Industry and Innovation and Minister for Science.
“Australia’s steel industry is critical to the Australian economy and the community of Whyalla. The Albanese Labor Government is backing Australia’s manufacturing sector, Australian supply chains and the thousands of good Aussie jobs that rely on this steelmaking facility.”
To support the sale and long-term transformation of the steelworks, the Australian and South Australian Governments have committed $1.9 billion in joint funding—part of a broader $2.4 billion support and transformation package aimed at converting the site into a low-emissions, ‘pit to port’ steelmaking operation.
KordaMentha has already spent significant time and capital on bringing the plant up to full compliance, positioning it as an attractive investment proposition. Shortlisted prospective buyers have now been given access to a secure data room to commence due diligence and submit non-binding indicative offers, as part of a staged sale process.
Operational stabilisation is well underway. An additional 75 workers have joined across critical departments such as blast furnace operations, steelmaking, and finishing. Recruitment is also ongoing for further roles in mobile maintenance and diesel mechanics.
Workforce development is being supported, with five apprentices onboarded this year and recruitment launched for 27 new apprentices to begin in 2026 with OneSteel Manufacturing.
Meanwhile, local businesses affected by the decline in steelworks activity have received direct assistance. Under the $100 million package announced by the Albanese and Malinauskas Governments, more than $15 million has been distributed to 61 South Australian companies through the Business Creditor Assistance Scheme.
A further $570,000 in grants has been provided to 57 Whyalla small businesses to offset reduced revenues.
One local firm, Avid Engineering, exemplifies the positive impact of this support. Early in 2025, the company had shrunk to five employees and was relying on the owner’s personal savings. Since receiving a government grant, Avid has expanded to a workforce of 27 full-time and 13 casual staff, including former Ferretti International employees.
“There is real opportunity to manufacture iron and steel using Australia’s abundant ore and renewable energy to set up this industry and the Whyalla steelworks for the decades to come,” said Ayres.
