Australia-based mining and materials company Arrium Limited has announced that the government of the state of South Australia will invest $50 million to help secure the future of Arrium’s Whyalla steelworks.
KordaMentha Restructuring, the voluntary administrator of Arrium that has been stabilizing the Arrium businesses for the past nine weeks, stated that investments of this size would make a big difference to the sale/recapitalization process for the Arrium companies, which is expected to begin next month. According to KordaMentha, the investment will make Arrium a much more attractive and sustainable proposition for potential investors.
KordaMentha also said that they are looking forward to working with South Australia to gain a further $100 million for future investment.