The South Australian Government has forced GFG, the owner of the Whyalla steelworks, into administration after it failed to pay tens of millions of dollars in royalty payments to the government, and owing millions in unpaid debt to creditors and workers.
Before announcing administration proceedings, the state government rushed through amendments to the Whyalla Steel Works Act on Wednesday morning.
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GFG will no longer run the steelworks, with KordaMentha has been appointed as administrator.
South Australian Premier Peter Malinauskas said the government was forced to act swiftly due to not only to GFG’s debts of more than $300 million but workers not being paid.
He said he would today announce one of the most comprehensive industry support packages the nation had ever seen.
News of the steelworks’ administration has added to growing doubts about the viability of the SA Government’s $593 million Whyalla hydrogen power facility, which was scheduled to begin construction this year for commissioning in 2026.
The state government has committed more than half a billion dollars to the Hydrogen Jobs Plan to build a world leading hydrogen power plant, electrolyser and storage facility near Whyalla.
The 200MW renewable hydrogen power plant will be a new source of flexible power, providing additional grid stability for homes and businesses around the state by using excess renewable energy generated from large-scale wind and solar farms to provide a consistent output of supply.
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“There are challenges in respect to this project,” Premier Malinauskas said.
“But that doesn’t diminish our determination to invest big dollars—hundreds of millions of dollars—in Whyalla.”
