The decision is expected to result in around 500 job losses, while the number of people affected could approach 600 when contractor workers are included.
KordaMentha, the administrator of the Whyalla steel plant in South Australia, has decided to end efforts to restart the facility’s 60 year old blast furnace and permanently close it.
The blast furnace has been offline since April 2026 and is reportedly beyond repair due to long standing technical problems and insufficient investment. The administrators stated that attempts to restart the furnace were not technically viable and could put workers’ safety at risk.
Around 500 workers to be affected
Around 500 employees are expected to lose their jobs as a result of the decision. Including contractors and temporary personnel, the total number of people affected could approach 600.
The South Australian and Australian federal governments announced a joint support package worth approximately AUD 10 million to assist affected workers and their families. The package will provide support for job searches, vocational training, financial advice and access to new employment opportunities.
Rolling mill to continue operating with imported blooms
The closure of the blast furnace will not bring all operations at Whyalla to an end. Mining and port operations, as well as rolling mill activities, are expected to continue.
Imported blooms will be supplied to the facility to maintain production. The semi finished steel products will be processed at the Whyalla rolling mill and converted into finished steel products. The pellet plant associated with the blast furnace is also expected to be closed.
Sales process continues
The sales process for the Whyalla steel plant, which has been under administration since February 2025, is continuing. India based Jindal Steel International and Australian company M Resources are considered the two leading candidates to acquire the facility.
BlueScope Steel, which currently provides technical support to the facility, is also reportedly entitled to make a final offer on the proposed transaction. A decision on the new operator is expected to be announced by the end of 2026.
South Australian Premier Peter Malinauskas stated that the future of Whyalla depends on new equipment and capital investment, describing the blast furnace closure as a difficult but unavoidable decision.
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