The sale of the Whyalla Steelworks has entered its final stages, with the federal and South Australian governments announcing a shortlist of two bidders competing to take over the asset.
The bidding process originally attracted initial interest from more than 70 parties worldwide, before being whittled down from five binding bids earlier this year.
The process marks a milestone since the South Australian government took the dramatic step of placing the facility’s former owner into administration in 2025 to safeguard its long-term future.
To secure the transition, the two governments are prepared to invest up to AU$1.9 billion in partnership with the incoming owner.
The funding aims to modernise the operations and transform the site into a low-emissions facility, capitalising on the Upper Spencer Gulf’s world-leading magnetite resources.
The shortlisted bidders share this vision for the Steelworks’ transition and have been invited to submit final funding proposals.
Federal Minister for Industry and Innovation Tim Ayres said the intervention was central to the government’s ‘Future Made in Australia’ agenda, securing sovereign steelmaking capabilities for decades to come.
“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,” Ayres said.
“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.”
The governments continue to provide joint funding of administration costs at the facility, ensuring administrators can maintain safe operations, pay wages and suppliers and undertake critical works to improve the Steelworks’ prospects of a sale to a new owner.
South Australian Premier Peter Malinauskas acknowledged the complexity of the transition but praised the quality of the remaining bidders.
“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,” Malinauskas said.
“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.”
