GFG's Whyalla Port Subsidiary Placed into Administration Amid Ownership Dispute

GFG Alliance has placed its subsidiary company, Whyalla Ports Pty Ltd, into administration after the South Australian government intervened in an ownership dispute over the facility. The government's law changes clarified that the port is owned by OneSteel Manufacturing, a GFG subsidiary, rather than Whyalla Ports Pty Ltd. The move left GFG with no option but to place the company into voluntary administration, citing severe revenue impact due to government actions. The port continues to operate as usual.

The South Australian government has allocated an additional $384 million to support the Whyalla steelworks in the 2025/26 financial year. This funding is part of a broader effort to keep the steelworks operational while it undergoes administration and potential sale. The state government has set aside this amount on the condition that the federal government will contribute half the cost [1].

The Whyalla steelworks, which was placed into administration in February 2025, has been the subject of significant government intervention. The initial $384 million funding, split 50/50 between the state and federal governments, was intended to cover the operational costs while the asset is prepared for sale. However, the administrator, KordaMentha, has indicated that the initial funding will not be sufficient to keep the steelworks running beyond August without additional support [1].

The South Australian government's budget announcement comes as the administration process is expected to continue for at least another 12 months. SA Premier Peter Malinauskas expressed confidence in the level of interest in the steelworks, stating that there is higher interest than anticipated from both domestic and foreign companies [1]. KordaMentha has reported up to 12 companies expressing interest in purchasing the asset.

The South Australian government's ongoing support for the Whyalla steelworks is part of a broader "sovereign steel package" worth $2.4 billion. The package aims to support the steel industry and encourage more investment in Australian-made iron and steel. The state's contribution to this package is $650 million, with the federal government also providing significant funding [1].

While the future of the Whyalla steelworks remains uncertain, the additional funding provided by the South Australian government indicates a continued commitment to supporting the steel industry and ensuring the smooth transition of the asset to new ownership. The administration process is expected to take another 12 months, with the state government anticipating that the steelworks will be transferred to a new owner [1].

References:
[1] https://www.abc.net.au/news/2025-06-06/whyalla-steelworks-contingency-fund-sa-budget-2025/105385146