Australian state and federal authorities have committed an additional A$275mn ($181mn) to Whyalla steelworks in South Australia (SA) to support efforts to sell the indebted 1.2mn t/yr plant, Australian industry minister Tim Ayres and SA premier Peter Malinauskas said today.
The SA state government also previously partnered with the federal government to create a A$2.4bn Whyalla support package, including operational financing and debt relief support. The additional A$275mn will allow the plant to continue production while its current administrator KordaMentha arranges the sale in partnership with financial advisory firm 333 Capital, Ayres and Malinauskas said in a statement.
Prospective buyers were given access to Whyalla's data room to allow due diligence on 24 June. Neither government has set a clear timeline on the sales process.
The plant was run by British-owned steelmaker GFG Alliance until the SA government forced it into administration on 19 February.
The SA government moved to take control of the Whyalla port from GFG Alliance on 15 May, which reduces operational risks and could make it easier for KordaMentha to sell the steelworks.
