500 jobs confirmed to be axed at SA’s Whyalla steelworks
Around 500 jobs will go as Whyalla’s blast furnace is permanently shut down, with administrators declaring the troubled furnace had ultimately ‘made the decision itself’.
Around 500 jobs are set to be axed at and around South Australia’s Whyalla steelworks, as administrators and the state government walk away from restarting the dormant blast furnace.
The closure has been announced on Monday afternoon, Premier Peter Malinauskas leading the press conference.
Sebastian Hams from KordaMentha confirmed around 500 jobs will be made redundant, but Whyalla’s steel shaping mill will keep operating.
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By continuing you agree to our Terms and Privacy Policy.“This take the full time employees... from 1700 down to about 1200,” Mr Hams said.
“At the end of the day the blast furnace made the decision itself. We’ve got to a point where it’s simply unsustainable to continue the blast furnace recovery, and the failure of the bast furnace is inevitable. “Today we’ve made the decision to close the blast furnace... impacting 500 jobs.”
The state government put Whyalla into administration in February 2025, and since then the plant has been run by administrator KordaMentha. The state and federal governments have put more than $1bn in to keep the operation going.
On Sunday, Mr Malinauskas reiterated that the 60-year-old blast furnace was in bad shape.
“The blast furnace’s days have always been numbered, and it’s looking as though that that number is becoming increasingly small, to say the least,” he said.
“The blast furnace is in an exceptionally precarious position and that problem has only been intensifying.
“This is a challenge we always knew was coming and … I think that’s becoming increasingly well known in Whyalla and to those that are working on the project.”
Indian-owned Jindal Steel, and Australian-owned M Resources remain in the running to buy Whyalla. BlueScope Steel holds the right of last offer.
A new owner would be able to import semi-finished steel for processing.
More to come
Originally published as Hundreds of jobs at SA’s Whyalla steelworks set to be axed
