South Australian Premier Peter Malinauskas has placed GFG Alliance, the company managing the troubled Whyalla steelworks, into administration following an urgent meeting today. In response, parliament swiftly amended the Whyalla Steel Works Bill, granting the state government access to the steelworks, its financial records, and priority over debts owed to the government.
Addressing the media, Malinauskas stated that GFG Alliance was no longer in control and that KordaMentha has been appointed as the administrator. He emphasized the importance of this action, recognising the significant responsibility it entails but insisting it is necessary to secure steel manufacturing in Australia. He deemed it unacceptable for such a vital economic asset to be operating under precarious conditions.
Last month, it was revealed that GFG Alliance owed the South Australian government millions in unpaid royalties, with SA Water additionally owed approximately $15 million. Malinauskas expressed optimism that the administration would help stabilise the business, ensuring its immediate viability and supporting its long-term future.