Whyalla Steelworks Permanently Closes 60-Year-Old Blast Furnace

Administrators KordaMentha and the South Australian government announced the permanent closure of the 60-year-old blast furnace at the Whyalla steelworks on September 14, 2026. The facility had been offline since April, and officials determined that restoration efforts were unsustainable. The shutdown results in the loss of 500 permanent employees and 100 contract workers, reducing the total workforce from 1,700 to 1,200.

Peter Malinauskas, Premier of South Australia, attributed the failure to the former owner, GFG Alliance, claiming the facility was run into the ground through decades of neglect. To assist displaced workers, the state and federal governments launched a joint support package of approximately A$10 million for reskilling and career planning. While the blast furnace and parts of the pellet plant are closing, the site's port, iron ore mine, and steel shaping mill remain operational.

The steelworks has been in administration since February 2025. KordaMentha is currently managing a sale process with M Resources and Jindal Steel International as the final bidders, while BlueScope retains a right of last offer. Both primary bidders propose replacing the old furnace with low-emissions electric arc technology. The sale, expected to conclude by the end of 2026, is tied to a pit-to-port indenture requiring the new owner to maintain steelmaking capacity to access local iron ore reserves. The government has offered up to A$1.9 billion in funding to a new owner to modernize the facility.