Latest news with #WhyallaPort
ABC News
5 days ago
- Business
- ABC News
GFG puts Whyalla port company into administration after government intervention
GFG Alliance has placed its subsidiary company which formerly operated the Whyalla port into administration, after the state government intervened in an ownership dispute over the facility. The company, Whyalla Ports Pty Ltd, was embroiled in a Federal Court case launched by Whyalla steelworks administrators KordaMentha, which wants control of the port so it can sell the steelworks as an integrated asset. The state government recently intervened by introducing law changes to "clarify" that the port is owned by OneSteel Manufacturing — the GFG subsidiary that operated the steelworks before being tipped into administration — rather than Whyalla Ports Pty Ltd. In a statement released on Saturday, a GFG Alliance spokesperson said the law change left it with "no option but to place Whyalla Ports Pty Ltd into voluntary administration". The spokesperson added that the company was "confident" the Federal Court case would have been decided in its favour "had the Australian legal system been allowed to determine the matter in the usual way". "Whyalla Ports revenue has been severely impacted by the actions of the South Australian Government," the spokesperson said. "Whyalla Ports Pty Ltd is unable to engage in any commercial activity after the termination of its lease and the seizure of assets by the South Australian Government at the request of the Administrators. "These actions have resulted in a complete stop in all revenue streams and therefore no ability to pay creditors." KordaMentha has continued to operate the port throughout the ownership dispute, while the state government said GFG's decision has no impact on the facility's operation. "The port continues to operate as usual," a state government spokesperson said. "The voluntary administration of any GFG operation is a matter for GFG." GFG claims that the administrators of the steelworks have "continued to use Whyalla Ports Pty infrastructure on land leased by Whyalla Ports without effecting payment for use of the land or infrastructure worth millions of dollars". But the state government claims that ministerial consent was required to lease the port and "this consent was neither sought nor granted". "The Government had complete confidence in the legal action undertaken by KordaMentha, however the legislative changes clarify the consequence of failure to gain consent and will ensure similar action will not be necessary in future," the government spokesperson said. KordaMentha sought to withdraw its legal claim against Whyalla Ports at a Federal Court hearing on Tuesday, saying the government's law changes had achieved what they were seeking. But the court also heard a cross-claim by the defendant, Whyalla Ports, would continue, with their lawyers telling the court there is still a dispute over the ownership of some assets. The matter is expected to go to trial in August. GFG said on Saturday that its decision to appoint administrators for Whyalla Ports will have "no operational impact on the rest of GFG Alliance".
ABC News
13-05-2025
- Business
- ABC News
Whyalla steelworks port ownership dispute triggers introduction of new legislation
The state government has moved to clarify the ownership of the Whyalla port amid ongoing legal action to wrest control of the facility from former steelworks owner GFG Alliance. Premier Peter Malinauskas today notified parliament that the government would introduce amendments to the Whyalla Steelworks Act 1958, around three months after placing the steelworks into administration. Mr Malinauskas said maintaining access to the port of Whyalla was "essential for the Whyalla steelworks' operations". He said the amendments were designed to clarify that the port was owned by former steelworks owner OneSteel Manufacturing. In February, OneSteel — the GFG subsidiary which ran the steelworks — was placed into administration by the South Australian government after long-running financial woes plunged the operation into crisis. But that legislation did not allow the government to seize control of the port, with Whyalla steelworks administrators KordaMentha launching legal action in April to seize control of the facility. The legislative changes run in conjunction with that legal action by stating that the Whyalla port is owned by OneSteel, not Whyalla Port Pty Ltd. The government argued this was always the case but Mr Malinauskas said the amendments would clarify the matter. He said administrators KordaMentha had already spent millions to address maintenance and safety risks at the steelworks. "However, not all risks arise from the apparent lack of maintenance and critical spend by the previous ownership," he said. "The administrators have advised the state of a reported lease agreement granted by OneSteel to Whyalla Ports Pty Ltd, a separate company owned by GFG. KordaMentha previously told the Federal Court that the port facilities were essential to present the steelworks to a potential new buyer. "The sale process cannot commence until the port issues are resolved," administrator Michael Korda told the court earlier this year. Mr Malinauskas said the port was used to export iron ore and receive key supply shipments. "The state has seen fit to clarify the status of the land which is subject to the purported lease of which OneSteel is the registered proprietor for the purpose of operating the port of Whyalla," he said. "The bill has been drafted out of an abundance of caution to clarify the effect of the failure to obtain prior consent, and make it clear that the purported lease agreement granted by OneSteel to Whyalla Ports never had legal effect from the beginning." The ABC has contacted GFG Alliance for comment.
