The administrators of Australia-based Whyalla Steelworks have decided to permanently shut down the facility's blast furnace after repeated attempts to restart it failed, resulting in the loss of around 500 direct jobs and a further 100 labor hire positions, according to media reports. The decision will reduce the workforce across the steelworks, associated mine and port operations from around 1,700 to 1,200.
The aging blast furnace, which has been offline since April this year, had been subject to repeated recovery attempts. Administrator KordaMentha said it had reached the point where continuing the recovery effort was no longer feasible, particularly given the risks to workers. Three employees were injured during restart attempts in July.
Steelmaking to cease until new facilities are built
Steelmaking at Whyalla will cease until new steelmaking assets using modern technologies are constructed. As a result of the closure and restructuring, some operations will disappear altogether, while others will continue with reduced staffing levels.
In addition to the 500 employees and 100 labor hire workers affected, the future of around 200 embedded contractors working for external companies across the steelworks, mines and port remains uncertain, although some may be redeployed.
Whyalla's existing operations are expected to continue using available steel inventories and imported material. The closure also suspends domestic production at Australia's only producer of rail steel, while the Whyalla facility is one of the country's two integrated steelworks.
Sale process remains on track for completion in 2026
The Whyalla Steelworks has been under the control of administrators KordaMentha since February 2025, after the South Australian government took control of the business from Sanjeev Gupta's GFG Alliance amid financial difficulties and unpaid liabilities.
Despite the permanent closure of the blast furnace, the South Australian government said the process to find a new owner remains on track for completion by the end of 2026. Jindal Steel and M Resources remain in the running to acquire the steelworks, while BlueScope Steel retains a right of last offer. The closure of the existing blast furnace means that a return to steelmaking at Whyalla will depend on the construction of new production facilities.
