Whyalla Steelworks Faces Financial Crisis with $1.3 Billion Debt

Administrators reveal severe underinvestment and daily losses of $1.5 million, prompting government intervention to safeguard jobs and operations.

The Whyalla steelworks in South Australia was placed into administration on February 19, 2025, after accumulating $1.34 billion in debt and severe operational challenges.
Administrators from KordaMentha reported that the plant was losing $1.5 million per day in the seven months leading up to administration, with minimal investment in repairs and maintenance.
The facility faced critical shortages, including only three days’ worth of coking coal, further jeopardizing its operations and safety standards.
The South Australian and federal governments have pledged $2.4 billion in funding to stabilize the plant, support workers, and attract a new owner committed to long-term investment.
Potential buyers, including BlueScope Steel, are being considered, with a focus on modernizing operations and ensuring the steelworks' financial and environmental sustainability.