South Australia’s premier has reassured workers in Whyalla that contingency plans are in place to prevent the collapse of the city’s steelworks.
But questions remain over when operator GFG Alliance will repay all of its debt, including to the state’s taxpayers.
Concerns have been mounting over the financial stability of GFG Alliance. It is facing difficulties globally, and the steelworks’ blast furnace is currently offline for the second time this year.
“We understand GFG is trying to maintain its financial position, but it shouldn’t be at the expense of the operations of the plant, particularly the safety of it,” Premier Peter Malinauskas said.
South Australia’s cabinet held a crisis meeting today, and state and federal governments have been developing plans in case the steelworks falls into administration.
There are signs of improvement, with creditors in Whyalla now being paid, but concerns remain about when the South Australian taxpayer will see money owed, after it was revealed government royalty payments are not being made.
GFG told 9News it remains committed to Whyalla and the global steel market is beginning to recover.
This article was produced with the assistance of 9ExPress.
