The future of the Whyalla Steelworks has taken another step forward, with Federal and State Governments confirming the sale process has narrowed to a final shortlist of two bidders.
The announcement marks one of the most significant milestones yet for the steelworks, which has been under administration since the South Australian Government placed former owner OneSteel Manufacturing Pty Ltd into administration on February 19, 2025. OneSteel is part of the GFG corporate group and owns and operates the Whyalla Steelworks and associated mines.
The two shortlisted bidders have now been invited to submit final funding proposals, as the state and federal governments continue working toward a new ownership model that keeps steelmaking in Whyalla and supports the transition to a modern, low-emissions facility.
More than 70 parties initially expressed interest in the steelworks, with five domestic and international industrial groups progressing to the binding bid stage earlier this year. That list has now been narrowed to two.
Together, the State and Federal Governments are investing up to $1.9 billion in partnership with a new owner to help transform the steelworks into a modern, low-emissions operation.
The steelworks has long been considered a critical national asset. According to the South Australian Government, Whyalla is one of only two Australian steelworks, produces 75 per cent of Australian structural steel, and is the only domestic producer of steel long products.
Federal Industry and Innovation Minister Tim Ayres said, “A Future Made in Australia means making the things Australia needs here. The Whyalla intervention is central to that: securing sovereign steelmaking, backing workers, and building the next chapter of low‑emissions Australian manufacturing.”
“This is about keeping Australian steel onshore for decades to come using Australia’s abundant resources and renewable energy to create more value, more jobs and lower emissions.”
“We’re partnering with South Australia and will work with a new owner to modernise Whyalla – investing alongside industry to deliver a modern, low‑emissions facility and a stronger industrial future.”
“The interest in Whyalla reflects what we already know: this is a strategic, pit‑to‑port asset with a strong future in iron and steel and it belongs at the heart of a Future Made in Australia.”
Premier Peter Malinauskas said, ““The intervention we led in Whyalla in partnership with the Albanese Government has given the Australian structural steel industry a stable footing and the prospect of a strong future.”
“We are pleased to see two high quality bidders shortlisted for the sales process.”
“These bidders are well resourced and well positioned to deliver what we have always sought – a long term, modern, low-emission sovereign steelmaking business capitalising on the opportunities before us in the Upper Spencer Gulf and its world-leading magnetite resource.”
“We know this massive transition will not occur without some pain – but we must not lose sight of the opportunity to secure this crucial industry for our nation for the long term.”
“This is a position we would have gladly taken when we put the Steelworks and associated mine operations into administration a little over a year ago.
“We look forward to completing the work ahead.”
