The looming threat of US tariffs on Australian steel imports has intensified the precarious situation in Whyalla, South Australia, putting the future of the local steelworks at risk. Sanjeev Gupta, owner of Whyalla Steelworks and head of GFG Alliance, is under scrutiny for his mounting debts to creditors and the state government, which has raised alarm among residents and local officials.
Calls for Gupta to address these financial obligations and ensure sustainable investment in the plant are growing louder, as reports emerge that GFG’s debts have soared to concerning levels, including $15 million owed to SA Water and significant unpaid royalties to the government. This financial instability has left Whyalla’s residents feeling neglected and uncertain about their future, with local Mayor Phill Stone expressing the town’s low morale.
Concerns have also been raised regarding GFG’s commitment to resolving the steelworks’ issues, leading to calls for urgent decisions. Further complicating matters is the recent announcement of a 25% tariff on steel imports to the US, which poses additional challenges for the struggling facility. In response, South Australian Premier Peter Malinauskas has reassured residents of a government plan to safeguard the steelworks, while the opposition seeks more transparency regarding these measures, with plans for an upcoming visit to Whyalla.