The Whyalla Steelworks blast furnace will not restart after months of efforts to bring it back online proved unsuccessful, with the Federal and South Australian Governments announcing a $10 million support package for affected workers and the local community.
Administrator KordaMentha confirmed the news on Monday, September 14th, following attempts over recent months to restart the blast furnace, which has been operating since it was commissioned in 1965.
The administrator said the furnace is now beyond repair, with years of underinvestment by the previous owner contributing to its condition.
The announcement is a major moment for Whyalla, where the steelworks has long been at the heart of the city’s economy and community.
Federal and state governments said they recognised the news would be deeply disappointing for workers and their families, while acknowledging the efforts of the workforce throughout the difficult period.
A joint $10 million support package will now provide assistance to workers, their families and the broader Whyalla community as the city navigates the next stage.
A dedicated workforce transition response has been established, including the Whyalla Worker Transition Centre at the TAFE SA Whyalla Campus.
The centre will provide workers with face-to-face access to career and employment support, including personalised career planning, job search assistance, training and reskilling opportunities and connections with local employers.
Workers and their families will also be able to access financial information and support services, as well as wellbeing assistance.
Minister for Employment and Workplace Relations Amanda Rishworth said, “From today, my department has staff on the ground in the Whyalla community, focussed on coordinating local support and guiding workers and families to assistance quickly.
“Information sessions, workshops and events will help people understand available employment, training, financial and wellbeing supports, plan their next steps, and engage with services in a way that suits their circumstances.”
While the blast furnace will cease operations, significant mining, port and other activities at the site will continue.
The administrator-led sale process for the steelworks is also progressing, with the Federal and South Australian Governments focused on finding a new owner prepared to invest in Whyalla’s long-term future and Australian steelmaking.
KordaMentha is consulting with workers and unions to understand future workforce requirements as proposals for the steelworks develop.
Both governments will continue funding the administration while the process is underway, ensuring workers’ wages continue to be paid.
Premier Peter Malinauskas said, “This is a difficult day, but one which is inevitable. The blast furnace at Whyalla is 60 years-old and for many years has not had the investment it deserves through recent decades.
“It is only due to the Herculean efforts of the workers in Whyalla that it has survived this long.
“The future for Whyalla rests in new equipment, new capital, which is what we are achieving through the sale process.”
SA Minister for Energy and Mining Tom Koutsantonis added, “Our intervention last year ensured the steelworks and Whyalla more broadly had a clear pathway to the future for years to come.
“We have always said however that that path would not be easy. The blast furnace was originally commissioned in 1965 and is at the end of its life, hastened by a lack of appropriate investment by the previous owner.
“The workers of OneSteel have done a heroic job trying to revive it, but all advice now points to the fact that it will not restart.”
For workers facing an uncertain period ahead, the immediate priority will be accessing support, finding new opportunities and making sure they are not left to navigate the transition alone.
