The first creditors’ meeting for the Whyalla Steelworks and associated iron ore mines in South Australia was recently convened, chaired by Lara Wiggins, a partner at KordaMentha. This follows the South Australian government’s decision on February 19, 2025, to place OneSteel Manufacturing, the owner of the Whyalla Steelworks, into administration due to its deteriorating financial position.
The meeting saw significant participation, with 330 virtual attendees and 120 in-person participants at the Westlands Hotel Motel, reflecting widespread concern about the steelworks’ future. Administrators revealed that the steelworks had been losing $1.5 million daily and owed creditors over $1.3 billion, including $569 million to GFG-associated entities, $40.2 million in unpaid royalties and bills to the South Australian government, $190 million owed to employees, $112 million in prepaid sales, and $437 million to trade creditors and suppliers.
In response to the crisis, both state and federal governments announced a $2.4 billion support package aimed at stabilising operations and supporting the Whyalla community. Premier Peter Malinauskas attended the creditors’ meeting, underscoring the government’s commitment to finding a sustainable solution.
Complicating matters, GFG Alliance, led by Sanjeev Gupta, claimed to be the largest creditor, asserting debts of approximately $500 million.
Operational challenges at the steelworks were also highlighted, including minimal repairs, low supplies of crucial materials, and only $8 million remaining in the bank at the time of administration.
The future of the Whyalla Steelworks, a critical economic driver for the region, remains uncertain as administrators work to stabilise operations and explore potential ownership structures.
