The Australian and South Australian Governments have announced an additional A$275m ($181m) in funding to support the Whyalla Steelworks during its transition to new ownership.
The Whyalla Steelworks is a significant employer in South Australia and is integral to the nation’s manufacturing sector.
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Since the company entered voluntary administration in February, the Malinauskas Labor Government and the Albanese Labor Government have collaborated to keep the business operational, supporting local jobs and providing stability to the community.
This investment aims to ensure the continued operation of the steelworks, a critical component of Australia’s sovereign manufacturing capability.
The funding will allow administrator KordaMentha to maintain safe operations, pay wages and suppliers, and carry out essential works.
These measures are intended to position the steelworks as a viable long-term asset for a future owner.
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By GlobalDataMinister for Industry and Innovation and Minister for Science Tim Ayres said: “Today’s funding announcement will give certainty to the thousands of people in Whyalla and surrounding communities connected with the steelworks.
“The governments significant intervention has stabilised the steel works while keeping workers in jobs and keeping this critical Australian steelmaking asset running while the most suitable owner is found.
“The commitment to securing the most suitable owner will safeguard Australia’s future steelmaking capability, ensuring Australia has the steelmaking capability it needs for the future.”
Following the formal commencement of the sale process on 24 June 2025, this additional funding marks a significant step in securing a sustainable future for the steelworks and the surrounding region.
The investment provides administrator and sales advisor 333 Capital with the resources needed to advance negotiations and identify a suitable long-term owner, ensuring the Whyalla community is supported throughout the process.
The governments have stated that they are open to interest from all credible bidders and will engage with any party presenting a competitive plan for modern steelmaking in Whyalla, without showing preference for any bidder.
The Australian Government also unveiled the A$1bn Green Iron Investment Fund in February.
The fund aims to position Australia as a leader in green iron manufacturing by supporting low-emission iron and steel production and greenfield projects, thereby attracting significant private investment.
Up to A$500m from the Green Iron Investment Fund will be allocated to assist in the transformation of the Whyalla steelworks, reinforcing local employment and aiding the energy transition.
