‘National disaster’ if troubled Whyalla steelworks falls over, SA premier warns
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Peter Malinauskas calls situation ‘tricky’ but says state government will continue to monitor Sanjeev Gupta’s GFG Alliance and act where it can. The South Australian premier says it would be a “national disaster” if Whyalla steelworks closed to leave Australia’s construction industry dependent on imports.
“It simply cannot be allowed to happen,” Peter Malinauskas told reporters on Tuesday. “What workers at the Whyalla steelworks should have confidence in is that I do not believe this nation wants to see steel making capacity lost.”. The struggling steelworks, bought seven years ago by British industrialist Sanjeev Gupta’s GFG Alliance, has been beset by problems due to a series of shutdowns of its coal-fired blast furnace, which lies at the heart of the steelmaking process. Jobs have been lost and promises to invest in the decarbonisation of the operations remain unfulfilled.
Sign up for Guardian Australia’s breaking news email. Whyalla’s mining and steel operations represent the economic foundation of a city relied on by numerous workers and other businesses, from contractors to cafes. On Sunday, it was reported that 40 contract workers supplying waste management services at the operation had been made redundant.
Malinauskas was asked on Tuesday if there would be government assistance for those that had lost their jobs. He did not answer the question directly, instead responding that the message for the federal government and the nation was that “this country can’t afford to have the Whyalla steelworks fall over.”.
