Latest news with #Whyalla
ABC News
17 hours ago
- Business
- ABC News
More job losses flow from Whyalla steelworks administration
After 19 years in a job that had been his pride and joy, Dylan Leebody is being forced to hang up his boots as another company in the troubled South Australian city of Whyalla enters administration. "It was a bit shocking at first to realise they're saying the days are numbered for this workshop … it was a bit disheartening," he said. "A lot of people are stressed out obviously about finding work." The workshop leading hand is one of 47 workers staying on at steel fabrication company Ferretti International, owned by GFG Alliance, until its final projects are finished. More than 100 jobs have already been lost, with 34 active staff terminated and the cessation of employment formalised for another 65. Mr Leebody said many employees were likely to find new roles but some could have to look beyond Whyalla. But for workers like himself with two young boys, relocation or FIFO work was not an option. Australian Manufacturing Workers' Union SA secretary Stuart Gordon said entitlements were also a major concern. "There's around $2.1 million owed in entitlements currently, we hope they can find the money and that's paid out," he said. He said there was still hope among workers OneSteel would buy the plant. Speaking after the first creditors meeting for Ferretti on Monday, administrator Michael Brereton from William Buck said the business was reliant on OneSteel as "its major customer". That was confirmed in a statement provided to the ABC by a GFG spokesperson, which noted that placing OneSteel into administration had resulted in "a significant downturn of Ferretti's revenue and operations". "[Ferretti's] employees have valuable skills and while the continued employment of the Ferretti workforce is a matter for the administrators, it is hoped that some employees will transfer to OneSteel," the spokesperson said. Ferretti was not the only business experiencing job losses that have been blamed on the town's struggling steelworks. Rail haulage group Aurizon has also explored the reduction of its workforce. According to a statement provided to the ABC by Aurizon, OneSteel had advised of an intention to "ramp down mining operations in FY2026", which would result in a reduction in train services from July 2025. "Aurizon is consulting with our workforce on the impact of this decision on our Whyalla-based workforce, which is expected to see a potential reduction of up to 24 positions," it said. Rail, Tram, and Bus Union (RTBU) SA secretary Darren Phillips said the organisation was planning to "explore options with Aurizon moving forward". Whyalla City Council mayor Phill Stone said the community remained resilient in the face of more job losses and many hoped the eventual sale of the steelworks could turn things around.
News.com.au
24-05-2025
- Politics
- News.com.au
Whyalla council votes for booze ban to slow anti-social behaviour
A major steel producing city has unanimously voted to extend a dry zone as it looks to curb alcohol-related problems and anti-social behaviour. Whyalla City Council voted for the expanded dry zone following a community vote that revealed overwhelming support for slowing down alcohol-related problems. In the lead up to the extension, Whyalla Mayor Phill Stone sought community input labelling the feedback as 'one of the most significant changes for the community.' 'The one thing within our control is to determine the area of the city that is covered by a dry zone, which is why we are taking action on a citywide dry zone, following community support for the initiative.' However, Mr Stone conceded the new dry zone would not be a 'silver bullet' for resolving alcohol-related anti-social behaviour. 'It will take a focused, multi-agency response to tackle the cause of the ongoing issues to achieve real improvements,' he said. 'This will need to include addressing housing issues, increased police resources, helping those who are at-risk to access support and a host of other measures.' In its council notes, Whyalla council confirmed they would now apply to the Liquor and Gambling Commissioner to have the citywide dry zone implemented. There will be a period of a few months between the application being lodged and the dry zone being implemented. In the lead up to the May 19 council decision, Mayor Stone received over 2500 community submissions. 'The decision was not made lightly, as we're aware this will be a significant change for the community,' Mr Stone said. 'The one thing within our control is to determine the area of the city that is covered by a dry zone, which is why we are taking action on a citywide dry zone, following community support for the initiative.' The city jumped into the national spotlight back in late February when the Whyalla Steelworks was forced into administration by the South Australian government. The steelworks, which employs over 1000 people and makes over 1.2 million tonnes of steel each year, was shedding about $1.5m every day before its collapse.
ABC News
22-05-2025
- Politics
- ABC News
Whyalla City Council looks to impose city-wide alcohol-free zone
Whyalla City Council has unanimously voted in favour of extending its existing dry zone to the whole city. It comes after an extensive public consultation with residents, frontline services and other stakeholders. It is an offence for someone to consume or have opened liquor containers in a dry area. With 2,500 responses, Mayor Phill Stone said the response was the biggest the council had received. "A lot of the comments were about safety, the feeling of people," he said. "Council is listening to the people … yes, we've always known it's not a silver bullet. "It's one of those issues where there are always going to be some people disappointed." Though she was supportive of the proposal, Kuring Gai woman and councillor, Tamy Pond, said more needed to be done to address the issue. She said a dry zone was one of the small elements that could be implemented to help police. "I see it as just one step in a huge picture ... we also need to have more services for our community as well," she said. Peter D'Abbs, from the University of Queensland School of Public Health, said governments too often focused on restricting the supply of alcohol or where alcohol was consumed. "We also need to consider how to reduce demand for alcohol," Professor D'Abbs said. "That consists of … making sure we have accessible treatment programs, accessible early intervention programs … and more preventative measures." Professor D'Abbs said there needed to be a high degree of community leadership and buy-in to be effective. "These kinds of measures are most effective when you have a community-based coalition," he said. The Barngarla Determination Aboriginal Corporation was contacted for comment. An application for a city-wide dry zone will be submitted to the Attorney General for consideration.
ABC News
19-05-2025
- Business
- ABC News
George Town locals are worried about their region's future as smelter limits operations
Liberty Bell Bay, near the northern Tasmanian community of George Town, is Australia's only manganese alloy smelter, and a major employer in the region. On Monday, the company, which has more than 250 full-time workers, announced it would "enter a period of limited operations". Tasmanian Premier Jeremy Rockliff has called it a period of "care and maintenance". It remains unclear how long it will last. Global ore supply issues, volatile prices, and extensive US tariffs have all been cited as reasons for the decision. And while the company has said there would not be any forced redundancies, locals say any jobs lost will be a hit to the region. Michael Wuksta has lived in George Town for almost three decades. He said Monday's announcement was not the first time the region had braced for the smelter's closure. "But it might be the last time," Mr Wuksta said. In 2019, the smelter's future was in doubt after its former owner, South32, announced it was reviewing its operations, before it was purchased by international company GFG Alliance the following year. Mr Wuksta said if it were to close, it would not be good for the wider community. In February, another GFG-owned entity, the Whyalla steelworks, was forced into administration by the South Australian government due to its failure to pay back its growing debt. The federal government then announced a $2.4 billion joint state-federal support package to protect jobs and ensure the continuation of the steelworks. George Town resident Irene Maynard said the announcement that work would now pause at Liberty Bell Bay had left her surprised. Ms Maynard said employees at the smelter — including her grandson — were upset. "If there's going to be jobs missing, it's going to be pretty bad. "I think the government should step in, but whether they do or not — that's a different thing." Another local, Colin Himmelberger, said the prospect of job losses was scary for the area's future. "And if a couple of hundred people lose their job, it's not going to be very good for the town at all. "It's hard enough to find a job these days without something like this happening. "Where are they going to go?" Mr Rockliff said he understood about 40 Liberty staff would be needed during the care and maintenance phase. "Naturally we're very concerned for the local community, all the employees," he said. In February this year, state-owned energy producer Hydro Tasmania confirmed it had locked in a 10-year power deal to supply electricity to the ferroalloy smelter, which accounts for about 7 per cent of the state's energy usage. Hydro Tasmania's acting chief executive Erin van Maanen at the time said the smelter was "a significant employer in the state" and described the agreement as mutually beneficial. Only a few weeks later, the South Australian government forced Whyalla steelworks into administration. At the time, Tasmanian Greens senator Nick McKim said the federal government should "be prepared to step in and "offer similar assistance" to the state-federal package delivered to Whyalla, should Liberty face the same fate. On Monday, Industry and Innovation Minister Tim Ayres urged Liberty to "provide sufficient support" to keep processing ore, and said he would establish a team within his department to assess the facility's commercial position. Mr Ayres said he would provide the federal and Tasmanian governments with advice over the coming days.
ABC News
14-05-2025
- Business
- ABC News
Administrator KordaMentha updates Whyalla Steelworks creditors and workers
An update on the administration of the Whyalla Steelworks in South Australia today has informed workers and creditors that $100 million has been spent by administrator KordaMentha so far. The South Australian government forced the steelworks into administration in February after the business, owned by GFG Alliance, failed to pay tens of millions of dollars in royalty payments to the government and millions in unpaid bills to creditors. KordaMentha partner Sebastian Hams said the $100 million had been spent on restoring inventory, sustaining capital expenditure and improving the site's safety. He said site visits from prospective buyers were underway. As for taking on the debts of Whyalla Ports Pty Ltd, Mr Hams said the administration was over One Steel Manufacturing Pty Ltd only. "[Whyalla Ports] is not in administration, and therefore I should assume that company is solvent and that's going to pay its debts as and when they fall due." Mr Hams said the blast furnace at Whyalla was now operating at its full capacity of 2,800 tonnes a day, "which means it's now running in a stable environment", but its life span was uncertain. "The new buyer will come in with new technology and a different mindset, so it's entirely dependent on what a new buyer wants to do," he said. Mr Hams would not reveal how much the loss in daily profit had been reduced. "The loss pre-appointment was running at about $1.5 billion a day," he said. "It moves on a daily basis, but it's significantly less. "We're really focused on seeking a buyer that is a manufacturer who understands steel … and understands the value in the mines." The state government moved to clarify Whyalla port's ownership by introducing amendments to legislation in parliament on Tuesday. Premier Peter Malinauskas told the parliament that the government would introduce amendments to the Whyalla Steelworks Act to show the port was owned by former steelworks owner OneSteel Manufacturing. One creditor who wished to remain anonymous told the ABC they were owed $100,000 to $200,000 by Whyalla Steelworks, with 10 to 15 per cent of this being from the port alone. They said they feared they may never receive the money owed to them from Whyalla Ports Pty Ltd due to the dispute over its ownership. "I don't think it's going to happen unless we put a letter of demand in to GFG, Sanjeev Gupta and his stakeholders," they said. "We're going through legal advice now." Another creditor who did not want to be identified said they were owed $20,000, outstanding for around seven months past the due date of payment. They said they did not realise Whyalla Ports was a separate company until a few weeks ago. "If we had known that, we probably would have done things a little bit differently in regards to the Whyalla Ports," they said. "A bit disappointing we had to find out the hard way." Steelworks employee Sue Kelly said the safety of the plant had been seriously lacking under GFG Alliance, but it had got "a lot better" since KordaMentha took over. "Even to the degree of our … PPE [personal protective equipment]," Ms Kelly said. Australian Workers Union local branch organiser Shane Karger said it was "fantastic to have the real situation put out to the people". "To develop a relationship that we have now with KordaMentha that is open and honest is definitely something that we would like to maintain going forward with new buyers," he said. "We'd hate to get to a situation where it's all cloak and dagger again, it's all secrets behind closed doors, and eight years down the track we're 'oh no, the steelworks is in trouble again'." GFG Alliance has been contacted for comment.
