Whyalla administrators in credit stand-off with Gupta's InfraBuild
The administrators of the Whyalla steelworks temporarily halted the delivery of steel to InfraBuild in a stand-off over payment amid tense relations between the two businesses associated with Sanjeev Gupta.
The British industrialist lost control of the Whyalla steelworks earlier this year when the South Australian government seized control, appointing KordaMentha to run the business and prepare it for sale.
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West Australian
14 hours ago
- West Australian
World Gold Council working to lure artisanal miners across globe away from ‘illicit actors'
The World Gold Council estimates up to 20 per cent of the world's supply of the precious metal is produced by 'artisanal' miners whose activities are vulnerable to exploitation from 'illicit actors' such as terrorists and mercenary organisations like the notorious Wagner Group. During his visit to Kalgoorlie-Boulder this week, the council's chief strategy officer Terry Heymann said the London-headquartered organisation wanted to bring these small-scale miners into the formal gold supply chain and make them less likely to work with 'informal and illicit markets'. Artisanal and small-scale mining involves individuals usually working by themselves and mainly by hand or with some mechanical or industrial tools. 'This is very different from the large-scale professional mines . . . (it's) not really happening in Australia, it's much more of an issue in other parts of the world, but it's an issue that we care about deeply and we're doing a lot of work in how to support responsible artisanal and small-scale gold mining,' Mr Heymann said. 'A number of my colleagues this week are in Ghana, where the Ashanti King is actually convening a conference to address this issue, which is how do we support access to the formal markets for small-scale and artisanal gold mining? 'Why is that important? 'Because if they don't have access to the formal markets, they go to the informal and illicit markets. 'And that's a real challenge for the gold industry, one that we're actively involved in and doing a lot of work on.' Mr Heymann said a report it held in partnership with former British deputy prime minister Dominic Raab highlighted the dangerous nature of these 'illicit actors'. '(Mr Raab's) findings, unfortunately, are really stark . . . without access to the formal market, these illicit, informal and sometimes illegal miners are forced to work with illicit actors, and that then gets into supplying gold funding for terrorist groups, mercenaries, with the Wagner Group as an example.' The Wagner Group is a Russian-based private military company which has been involved in conflicts across the globe, including the current war in Ukraine. Notoriously, in June 2023 the group's then-leader Yevgeny Prigozhin launched an 'armed mutiny' against the Russian military — but it ended before the Wagner Group's planned march on Moscow. Mr Prigozhin died in a plane crash in Russia in August 2023. Mr Heymann said the issue was extremely important for the whole gold sector. 'It's a different part of the gold sector to where most of the people investing in gold are going to be getting their gold from,' he said. '(And) it's not something the industry can do by itself, and this is why we are calling on governments around the world, particularly those involved in the G20, who can really group together and make a difference on this to take action, to be part of this coalition of the willing to actually drive change. 'My boss, the CEO of the World Gold Council, was meeting with the secretary-general of the Organisation for Economic Co-operation and Development last week, who is Australian — Mattias Cormann — and he pledged OECD support to us. 'The OECD has been hugely involved in this, and I think it's that level of support we need — of the OECD, of national governments in Australia, in the US and Canada, big mining nations using their ability and their leverage to bring together different groups of people who can really address this issue.'
ABC News
a day ago
- ABC News
New $384m contingency to keep Whyalla steelworks afloat during administration
The South Australian government has set aside another $384 million to keep the Whyalla steelworks running next financial year — doubling the amount already allocated to keep the plant operating during administration. After tipping the financially troubled Whyalla steelworks into administration in February, the federal and state governments announced they would spend $384 million — split 50/50 — to cover the costs of running the steelworks while they are prepared for sale. But that initial funding will soon run out, with steelworks administrator KordaMentha recently flagging that it could not keep the steelworks running beyond August without more money. Thursday's state budget revealed the state government has set aside another $384 million to keep the steelworks afloat next financial year. The extra money — which is a contingency and might not be spent in full — has been allocated "on the basis" that the federal government will cover half the cost, according to the budget papers. The ABC has reached out to the federal government for a response. SA Premier Peter Malinauskas said the government anticipates there is still "at least" 12 months to run with the administration process. "The objective here is to transfer the steelworks to a new owner — that was always the plan," he said on Friday. "We said from the outset that the first tranche of administration funding wouldn't be the last. We said that we anticipate it would take 18 months." The initial $384 million to keep the steelworks running was part of an overall $2.4 billion "sovereign steel package" put together by the state and federal governments to support Whyalla. The state's contribution to the joint state-federal package was $650 million, according to Thursday's budget papers. Asked if he was confident the federal government would cover half of the new administration funding, Mr Malinauskas said: "That's certainly what's occurred in the past and what we would anticipate occurs in the future." The money is being paid directly to administrator KordaMentha, which took control of the steelworks in February after the government lost patience with former owner OneSteel Manufacturing over unpaid bills and underinvestment. Representatives for KordaMentha have since said they were "shocked" by the state of the steelworks when they arrived, revealing the plant was losing $1.5 million a day before they took over. The administrators have also said the steelworks had "insufficient spare parts", "poor health and safety practices" and instances of "inadequate or no maintenance", leading to high costs in the first six months of the administration. SA Energy and Mining Minister Tom Koutsantonis said at the time it was "fair to say that we have discovered more things than we anticipated that have not been done that should have been done by the previous owners". OneSteel's parent company, GFG Alliance, which is chaired by British businessman Sanjeev Gupta, has previously disputed that it underinvested in safety during its time owning the steelworks. It has claimed to have spent "over $2 billion" on repairs and maintenance upgrades "to make Whyalla fit for purpose". "The safety of our people was always our number one priority and our record of an improvement in safety during GFG's ownership, speaks to that commitment," a GFG spokesperson said in March. The ABC has contacted KordaMentha for comment. Mr Malinauskas expressed confidence in the administration process today, saying the level of interest in the steelworks from both domestic and foreign companies is "higher than what we anticipated". KordaMentha has previously said there are up to 12 companies interested in buying the asset. "This is a massive integrated mining and steel production proposition — it is an exceptionally complex business in an even more volatile global market," Mr Malinauskas said. "So, anybody that's going to buy the steelworks … is going to need to do a lot of due diligence. "That work is what we're starting to see, many businesses have already had access to the site as a precursor to the formal sale process, that has gone well both overseas and domestic industrial players. "But there is a lot of work to be gone through here before they are going to result in a final transaction."
West Australian
a day ago
- West Australian
South Australian treasurer Stephen Mullighan announces new $28m AI program in state budget
The coming AI tidal wave is beginning to hit into Australia's public sector, with the South Australian government announcing a new $28m program to embed the technological revolution into policing, healthcare, finance and law. Treasurer Stephen Mullighan delivered the surprise allocation in the state's 2025-26 budget, with the funding designed to 'maximise on the benefits and promote growing the use of AI applications across the South Australian public sector'. The budget measures claim the program will initially prioritise policing and healthcare with a set of 'proof of value trials'. 'Through targeted proof of value trials in priority areas such as health care and policing, this funding will provide support for broad applications across government and allow multiple use cases to be developed on trusted foundational technologies, with appropriate governance and alignment to the investment principles of the digital investment fund,' the document says. 'The health sector is a priority for funding consideration, as global evidence shows that integrating AI in specific areas of healthcare can reduce costs and improve operational efficiency, allowing healthcare professionals to spend more time on clinical care.' In policing, the program will look to enhance efficiency and safety for officers. 'AI can be used to support real-time decision making to help allocate resources effectively, increase officer and public safety and reduce administrative burden on officers, freeing up time for more value-added work,' the document states. 'Other areas considered for priority funding may include allied health, social work and legal and financial areas of the public sector.' The program, which sits within the government's broader digital investment fund, is funded from 2025-26 through to 2028-29, with an estimated $4.6m in yearly operating expenses and $2.4m in yearly investing expenses. Twenty full time jobs are expected to deliver the program over the period. South Australia's explicit support for AI comes as all jurisdictions grapple with the promise and peril of AI. In February this year, Queensland Information Commissioner Joanne Kummrow warned taking a 'wait and see' approach to AI risked the public sector 'falling behind understanding and responsibly engaging with its capabilities and challenges'. 'While AI shows promise as a powerful tool capable of delivering improved public services, agencies need to take the 'right path' by mitigating privacy and security risks and ensuring its ethical and transparent use, rather than taking the 'fast lane' without due regard to the necessary guard rails and protection of citizens' personal information,' she posted to the website of the Office of the Information Commissioner. The NSW government, meanwhile, funnelled more than $2.7m in grants to 16 councils in mid 2024 to trial AI in local planning systems. The trials were designed to 'improve the development application process for all users, including homeowners, councils and developers'. Outside of government, South Australia will also deploy AI to develop a fuller picture of its mineral wealth, with a particular focus on copper production in the giant Gawler Craton, which sprawls across the central portion of the state.
