Whyalla is facing the imminent loss of up to 600 jobs as administrators at KordaMentha prepare to shut down the steelworks’ blast furnace, marking a significant setback for the South Australian industrial town. The announcement came on Monday after union officials and affected employees met with South Australian Premier Peter Malinauskas, who traveled to Whyalla earlier that day.

Workers at the steelworks were informed that efforts to revive the blast furnace, which has been idle since April, would cease. The closure is expected to have a broader impact, potentially affecting more than 800 workers, including contractors and labor hire staff, as administrators evaluate the future structure of the steelworks’ remaining operations.

In a communication sent to steel suppliers, a senior Whyalla executive explained that the decision to shut down the blast furnace was driven by safety concerns, stating it was no longer appropriate “to place our people at risk in pursuit of a recovery that is no longer feasible.” Alongside the blast furnace, the associated pellet plant will also be permanently closed. The email also noted a significant reduction in labor and contractor opportunities across other parts of the steelworks, with the full extent of job losses expected to become clearer in the coming weeks.

The blast furnace’s shutdown is attributed to its age and a prolonged period of underinvestment in maintenance and preventive upkeep during the ownership of GFG Alliance, led by former chairman Sanjeev Gupta. Efforts to rehabilitate the plant and restore its operational capacity to produce steel had continued since April but ultimately proved unsuccessful.

Premier Malinauskas emphasized that the closure does not derail the state and federal governments’ commitment to securing a new owner and revitalizing the Whyalla steelworks with modern technology and equipment. He outlined a $10.2 million support package, jointly funded by the Albanese government, aimed at assisting affected workers through career counseling, job placement services, and targeted retraining programs.

The announcement reached Canberra, where Industry Minister Tim Ayres criticized Sanjeev Gupta’s leadership. Ayres stated that the owner had failed the community and workforce, calling it a disappointing outcome for those who depended on the steelworks for their livelihood.

As Whyalla confronts the economic consequences of the blast furnace shutdown, local and federal authorities are focused on efforts to secure the steelworks’ future and mitigate the impact on the region’s industrial workforce.