Government Unveils $2.4B Rescue Plan for Whyalla Steelworks

The federal and South Australian governments have stepped in with a massive $2.4 billion rescue package to save Whyalla steelworks after its operator, OneSteel Manufacturing, was forced into administration.

Prime Minister Anthony Albanese and SA Premier Peter Malinauskas made the big announcement today, reassuring workers and the local community that Whyalla’s future is secure.

The package includes $100 million in immediate support, with $50 million set aside to help unpaid creditors. Another $1.9 billion will go into upgrading the steelworks, and $384 million will help stabilise operations. To make this happen, the SA government is even redirecting $50 million originally meant for its Hydrogen Jobs Plan.

Albanese, speaking from Whyalla, called this a "vote of confidence" in the region. "We want Whyalla not just to survive but to thrive," he said. "There’s a real sense of relief today—jobs are safe, and the future looks strong."

Whyalla’s steelworks play a crucial role in Australia, producing 75% of the country’s structural steel. It’s the only local producer of steel long products—vital for building railways, bridges, hospitals, high-rises, and even defence infrastructure. More than 1,100 workers are directly employed, with another 2,000 jobs depending on the steelworks.

The financial troubles at OneSteel, which is part of Sanjeev Gupta’s GFG group, have been brewing for a while. The company owes tens of millions to the SA government and around $15 million to SA Water. Recently, Gupta announced he’d sell his Tahmoor Coking Coal Mine in NSW to help clear debts.

Malinauskas was clear: this isn’t a bailout for Gupta or GFG—it’s about saving Whyalla and protecting steelmaking in Australia. "This is about supporting the businesses and workers on the ground who’ve done nothing wrong," he said. "They’ve kept paying their workers even when they weren’t getting paid themselves. That sacrifice deserves recognition."

KordaMentha has been appointed as the administrator and will be looking for a new owner. But in the meantime, Albanese gave a firm guarantee: no jobs will be lost.

The rescue plan has been welcomed by unions, including the Australian Workers’ Union, Australian Manufacturing Workers’ Union, Electrical Trades Union, and the Maritime Union of Australia, all of whom say it brings hope for the future.

As for GFG, they’re still figuring out what this all means for them, but they say their top priority is their workers' wellbeing and safety.