The owner of the Whyalla steelworks, Sanjeev Gupta, has stated that GFG Alliance is actively working on securing new financing as the company strives to meet its financial obligations to creditors.
In a statement issued late Tuesday, Gupta emphasized that GFG was “steadily increasing production,” and underscored the importance of cooperation from all stakeholders to ensure success.
The statement follows heightened attention on GFG, with South Australian officials revealing that the company owes approximately $15 million in unpaid water bills to the state government, in addition to overdue mining royalties. Premier Peter Malinauskas also disclosed that GFG’s outstanding royalties amounted to “tens of millions of dollars.”
Throughout 2024, the Whyalla steelworks has faced significant financial difficulties, including two lengthy shutdowns of its blast furnace, which halted steel production and cost GFG millions of dollars. The company has also encountered issues in New South Wales, where hundreds of workers at its coal mining operations were temporarily laid off due to the company’s failure to pay its suppliers.
In his statement, Gupta reassured creditors and stakeholders that GFG was making “substantial progress” and expressed gratitude for their “exceptional patience.” He acknowledged that much work remains, but emphasized that the improvements being made are essential as the company works to settle its debts.
To expedite the recovery, Gupta confirmed that GFG was in the final stages of securing new financing. Although this process has taken longer than initially expected, he expressed confidence in its successful completion. Gupta also mentioned that GFG’s revenue is steadily increasing, fueled by higher steel sales. Since the blast furnace was restarted, the company has managed to cut its losses at the steelworks by more than 30 percent.
Gupta reiterated the critical importance of the continued ramp-up in production and the need for collaboration from all involved parties to avoid setbacks. He also reassured the people of Whyalla, reaffirming his commitment to the city. “GFG has invested significant resources to sustain Whyalla, and the city remains our top priority,” he said. “Despite the extended disruption to operations, we are making meaningful progress.”
In response to questions about whether the situation would “reach a breaking point” this week, Premier Malinauskas indicated that while it wasn’t certain, it was a possibility, adding, “I don’t think so, but that’s possible. To be honest, only a couple of people within GFG would truly know what’s going on.”