The troubled Whyalla Steelworks is answering debts and shutdowns with a $150 million loan.  

GFG Alliance, owner of South Australia’s Whyalla steelworks, has secured financing from an international credit fund to stabilise operations and repair its blast furnace, offline since August due to a coking coal shortage. The funds will also settle overdue payments to employees and suppliers.  

Whyalla, acquired by British billionaire Sanjeev Gupta in 2017, has faced operational turmoil. 

Rail services by Pacific National and Aurizon were recently suspended over payment disputes, crippling the transport of steel products and iron ore. 

Contractors, including Golding and shipping firm CSL, have halted work due to unpaid debts.  

Local MP Eddie Hughes said the loan is “a step forward” but demanded clarity on its terms, including interest rates and repayment conditions. 

He stressed the need to resume contractor operations and provide workforce certainty.  

GFG Executive Chairman Sanjeev Gupta has pledged his commitment to Whyalla, linking the loan to the “Back to Black” strategy aimed at restoring profitability and advancing green steel production. 

GFG has already invested $400 million in Whyalla over two years.  

Restoring the furnace remains critical. Ten of its 12 air-delivery tuyeres are functional, though high silica levels in early output remain a challenge. 

New Managing Director Theuns Victor, appointed in October, says daily losses are nearing $1 million and stressed the need to restart production promptly.  

While the funding offers temporary relief, GFG’s financial practices and ability to sustain operations remain under scrutiny. 

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