The decision to place the Whyalla steelworks into administration has been in the works for several months, with discussions taking place as early as December. On December 23, Bruce Carter, chair of South Australia’s steel taskforce, first reached out to KordaMentha, the firm that would ultimately be appointed as administrators. This was nearly two months before the government formally decided to enter the steelworks into administration.
Key meetings occurred early in the new year, including a significant discussion on January 28 between Mark Mentha from KordaMentha and government representatives. By February 15, an official request was made for KordaMentha to take on the role of administrator. This sequence of events culminated in the finalisation of the deal the previous week.
Throughout this period, some creditors of the steelworks faced financial difficulties. Notably, Fenner Dunlop, a company providing conveyor belts, ceased its services after failing to receive payment and is reportedly owed millions. This situation has prompted concerns regarding whether the South Australian government acted decisively enough in addressing the challenges faced by the steelworks.
Despite the criticisms, the government has defended its timing, asserting that its main objective was to safeguard the interests of creditors during the process. The unfolding situation reflects broader implications for the region’s economic landscape and raises questions about the future of the steelworks amid ongoing uncertainty.