South Australian Premier Peter Malinauskas is promoting the potential expansion of magnetite ore mining linked to the Whyalla steelworks, currently under administration. KordaMentha has been managing the steelworks and associated iron ore mines for nearly a year, following government intervention due to unpaid bills from previous owner Sanjeev Gupta. The Whyalla steelworks is a major steel manufacturer, producing a range of steel products for the Australian market. The associated iron ore mines supply the raw materials necessary for steel production.
Approximately $20 million in funding from the South Australian and federal governments has been allocated to early development work at the Iron Duke deposit, situated about 56 kilometres from Whyalla. Malinauskas stated that five shortlisted proponents are conducting thorough technical, financial, and operational due diligence in preparation for submitting binding bids for the steelworks in the coming months.
Site visits have been conducted by international entities from Japan, Korea, India, Vietnam, and Europe. BlueScope Steel chief executive Tania Archibald mentioned on Monday that acquiring the steelworks in collaboration with a consortium that includes Japan’s Nippon Steel is a possible consideration. Archibald emphasised, “I stress that it really is an option.”
