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ABC News
17 hours ago
- Business
- ABC News
GFG Alliance workers across Australia face an uncertain future as Sanjeev Gupta's financial woes worsen
Months after British industrialist Sanjeev Gupta was effectively stripped of ownership of his South Australian steelworks, hundreds of workers at his New South Wales coal mine remain stood down, and those at his Tasmanian smelter are about to be. The uncertainty is causing anger and frustration. "The future looks grim," said Jimmy Baker, who has worked at the Tahmoor coal mine in NSW for the past 20 years. "I hope we're back and cutting coal in no time at all. But the longer it drags on, that looks grimmer and grimmer." Mr Baker is one of 560 workers affected by the indefinite shutdown. While workers have been stood down with pay since February, he says he's feeling the financial strain after having to forego hundreds of dollars in bonuses. "People think we're sitting at home [and] we're rich … [but] we're on basic pay," he told 7.30. "By the time I pay the mortgage, child support, you're down to $60 some weeks. The prolonged shutdown has also taken a significant toll on Mr Baker's mental health. "My biggest fear going forward is being 52 and jobless ... what company is going to hire a 52-year-old?" he said. "I find myself walking around the house or walking inside to outside. There are days where I really do struggle." Sanjeev Gupta is struggling to keep his global empire afloat amid poor economic conditions and the collapse of his major financier, Greensill Capital, in 2021. His credibility has also taken a massive hit. In February, the South Australian government took the extraordinary step of placing Mr Gupta's Whyalla steelworks into administration because bills weren't being paid. Trade and other creditors were found to be owed more than $1 billion. The South Australian and federal governments have pledged $2.4 billion to help secure the steelworks' future. Bob Timbs from the NSW Mining and Energy Union told 7.30 the Tahmoor mine shutdown was only meant to last weeks, not months. "We were of the understanding that it was only going to take a couple of weeks for them to realise the further capital investment from prospective investors and that never occurred," Mr Timbs said. Mr Timbs said government intervention was needed. "The coal produced at Tahmoor is a high-grade coal used for steel production," he said. "It's widely used in Port Kembla and for export and it's completely necessary for us to have the likes of washing machines, clothes dryers, cars; anything that's made out of steel is made with coal. "We need to get it operating again. For that reason, I call on the state government to intervene and arrange a tripartite meeting between Mr Gupta, the department and myself and other stakeholders to clearly explain when he's going to start that operation back up." The NSW government is owed royalty payments and the mine is in arrears with its water bills, a similar situation to what was faced by the SA government. In a statement, NSW Natural Resources Minister Courtney Houssos said she had been monitoring the situation at Tahmoor closely and that it was in "everyone's best interests for GFG to quickly resolve their financing" and end the uncertainty. 7.30 understands Ms Houssos has written to Mr Gupta demanding to know the progress of refinancing and when the mine will reopen, after a previous assurance that operations would restart by May 24 wasn't met. A spokesperson for GFG Alliance said it was working hard to secure the "funding required for a resumption of normal operations at Tahmoor Colliery". It said the "complex process has taken longer than expected" but it would "continue to work towards finalisation of this funding" and was hopeful it would be completed soon. In Tasmania, Mr Gupta's Liberty Bell Bay manganese smelter will stop operations for at least four weeks from the middle of this month. Most of the 250 workers there won't be required and are expected to use their leave entitlements. The company is largely blaming ore supply challenges after a cyclone affected its main supplier, South32 GEMCO, in the Northern Territory last year. Ore shipments have since resumed. Independent MP Andrew Wilkie told 7.30 he was very concerned another of Mr Gupta's operations was facing problems. "So why isn't (GEMCO) shipping ore out to Tasmania, or — and I just floated this as a genuine question — is there doubt in the mine owner's mind about the future capacity of Liberty Bell Bay or GFG Alliance more broadly to pay its bills for that ore?" Mr Wilkie told 7.30. GFG's statement said Liberty Bell Bay had made a "declaration for ore with South 32 GEMCO for the remaining six months of the year" and was "now working through the contractual process". "We are continuing to work closely with the federal and Tasmanian governments through a joint taskforce as we deal with the residual impact of inventory and market challenges over the last several months," the statement said. Andrew Taylor worked at the manganese smelter for 43 years before retiring 18 months ago. He's worried about his former colleagues. "They're salt of the earth people. It's not right," Mr Taylor told 7.30. He said people were nervous given what they'd seen happen at Whyalla and Tahmoor. "It is extremely stressful for people in the community, extremely stressful." University of Sydney corporate law and insolvency professor Jason Harris told 7.30 that since the collapse of Greensill Capital, Mr Gupta's GFG Alliance has faced increasing difficulty securing finance. "He's having to turn to second, third and fourth tier lenders," Professor Harris said. The UK's Serious Fraud Office is investigating the relationship between GFG Alliance and Greensill Capital over suspicions of fraud, fraudulent trading and money laundering. GFG Alliance has denied any wrongdoing. "One of the features of Mr Gupta's global empire is that it is very opaque ... so lots of companies that have dealings with each other and often not a lot of independent, transparent reporting of financial results," Professor Harris said. "We're seeing multiple entities in different group structures in often very different businesses that are all experiencing significant financial distress at the same time. "It certainly seems to be a house of cards. Professor Harris said Australian authorities like ASIC should be asking questions. "At some point, I think we're entitled to ask, where were the gatekeepers here? Why weren't more questions asked?" he said. "Because the media has certainly been asking questions about the sustainability of Mr Gupta's empire for years and yet creditors keep lending him money, governments keep giving him handouts, and I think the public is entitled to ask why." A spokesman for ASIC said it was aware of the situation regarding the Whyalla Steelworks and GFG Alliance and was "continuing to monitor and evaluate the situation". Watch 7.30, Mondays to Thursdays 7:30pm on ABC iview and ABC TV Do you know more about this story? Get in touch with 7.30 here.
The Guardian
28-05-2025
- Politics
- The Guardian
‘Welsh is a living, breathing language': joy as Port Talbot hosts Eisteddfod yr Urdd
One of the poems pupils from the local school performed at this year's Eisteddfod yr Urdd held a particular significance for the Port Talbot audience. Y Ffatri'n Cau, or The Factory Closing, tells the story of the despair engulfing a man who has lost his job, and finds the future is now 'yn rhoi clep yn ei wyneb' – a slap in his face. The south Wales town, one of the most deprived in the UK, is still grappling with the closure of the blast furnaces at Tata Steel, which shut down in September after more than 100 years, costing nearly 3,000 jobs. The sense of injustice was inflamed by the UK government's decision last month to step in to save the Scunthorpe steelworks in Lincolnshire from a similar fate. 'It's been a rough time for the community lately,' said Mark Morgan, a Welsh language teacher at the English-medium Ysgol Bae Baglan, speaking at the Eisteddfod site at Margam country park on Tuesday. 'The steelworks closing came right after Covid, back to back blows. 'That is one of the reasons everyone is delighted the Urdd Eisteddfod came to Port Talbot this year. It's been very fulfilling for the children and everyone else, all the volunteers, to channel their energy into something positive and imaginative that encourages them to be proud of who they are and where they come from.' Eisteddfod yr Urdd is an annual celebration of Welsh language and culture for young people that travels to different locations each year over the spring half-term holiday featuring poetry, singing, dance, instrumental and composition competitions. This year's theme is Dur a Môr, or steel and sea, in a nod to the area's industrial history; the chairing of the bard, the most important event in the week-long event, will involve a new ceremonial chair made from the last virgin steel the town produced. 'People think of Port Talbot as just industry and the M4, but there's lots more Welsh history here. Aberafan was the home of the Lords of Afan,' said Llio Maddocks, the Urdd's artistic director, referring to the medieval Welsh princes. Urdd o Bawb, or Urdd for Everyone, an initiative launched to celebrate the organisation's centenary in 2022, has made entry free for low-income families, cut membership fees from £10 to £1, and involves free shuttle buses from Port Talbot station. Most of the Port Talbot community do not speak Welsh as a first language, but according to Urdd Gobaith Cymru, this year there are more Welsh learners competing than ever before, including 36 English-medium schools taking part for the first time. There was also a record number of entrants overall – 120,000 – before competitors for the final week were whittled down to 15,000. 'One of my favourite parts of the week is seeing parents in the audience just thrilled and proud of their kids speaking Welsh even if they don't,' said Maddocks. 'We are here to show that Welsh is a living, breathing language and provide a space for that to thrive outside the classroom.' Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Tuesday brought relentless wind and rain to Margam park, but thousands of families in waterproofs and wellington boots still braved the elements to watch the performances and mill around in the festival atmosphere. Carys Mugford, a teacher at St David's Catholic primary school in the Gower, who learned to speak Welsh fluently during a sabbatical programme in 2019, said the opportunity to bring a group of six- to 11-year-olds to perform in one of the dancing competitions and get more familiar with the language was welcome. 'About 60% of the kids at our school speak English as a second language, and I've found they're often more enthusiastic about Welsh because they're already familiar with having to get to grips with another language,' she said. 'It's wonderful to show that Welsh language and culture is for everyone.' Harri, 12, a year seven pupil at Ysgol Bae Baglan who performed several poems and made a presentation to a Welsh government delegation with three classmates, said he was glad the Eisteddfod had come to Port Talbot this year. 'It's great to have visitors coming to Port Talbot,' he said. 'It is really exciting to compete and show what we can do.'
South China Morning Post
18-05-2025
- South China Morning Post
Two weeks' free accommodation offered by German city in bid to attract new residents
An eastern German city is offering two weeks of free lodgings in a bid to attract new residents as it continues to grapple with depopulation some 35 years after reunification. Successful applicants will be eligible to spend two weeks in a furnished flat in Eisenhüttenstadt, some 100km (62 miles) southeast of Berlin, from September 6-20, the city administration said. Like many other regions in the former communist East Germany, Eisenhüttenstadt has seen a sharp population decline in the decades after German reunification, with younger people in particular moving away to look for work elsewhere. City official Julia Basan noted that the current population has declined to some 24,000 in recent years, from around 50,000 in 1990. Eisenhüttenstadt was initially designed for a population of 30,000. Located on Germany's eastern edge on the border with Poland, Eisenhüttenstadt was founded in 1950 to provide accommodation for workers at a newly established steelworks.
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.
Yahoo
11-05-2025
- Business
- Yahoo
Starmer says he is ‘horrified' steelworks are mothballed due to SNP's ‘bad deal'
Sir Keir Starmer has said he is 'horrified' that steelworks in Lanarkshire have been effectively mothballed, and is calling on John Swinney to step in to revive them. The Prime Minister said the SNP-run Scottish Government had failed to find work to keep the sites thriving after negotiating a 'bad deal' which saw them being bought by a new owner. The plants at Dalzell and Clydebridge were bought by the Liberty House group in 2016, backed by a £7 million loan from the Scottish Government. The group, which is part of Sanjeev Gupta's GFG Alliance, also owns the Lochaber aluminium smelter. The Labour leader's comments come after the US trade deal which was reached on Thursday – which cut tariffs on cars, steel and aluminium. Mr Swinney's party said Sir Keir was attempting to 'wash over' his own industrial failures. Writing in the Sunday Times, the Prime Minister said: 'I'm proud we've secured a deal that slashes tariffs on the steel and aluminium industries to zero. 'This Labour government will always support our proud steel industry. So I'm horrified that the Dalzell and Clydebridge steelworks in Lanarkshire are lying mothballed, with workers on furlough. 'All because the SNP negotiated a bad deal and have had no industrial strategy to bring work to those mills. 'We're standing up for Scottish steel – now Swinney needs to step in and get those plants up and running again.' It is understood that some staff at Dalzell in Motherwell have been furloughed and there is no work going through the plant. The Prime Minister also highlighted the trade deal with India, which cuts costs on the crucial Scottish export of whisky. SNP MP Pete Wishart laid the blame on the UK Government, saying it had failed to back the Scottish industry in contrast to the action taken to protect plants south of the border. He told the newspaper: 'The audacity of Keir Starmer to attempt to wash over the UK government's betrayal of Scottish industry is insulting. 'They put emergency support in for Scunthorpe steelworks and deliberately legislated to exclude Scotland and therefore, Dalzell works from any such help, now or in the future.' He added: 'Like the Tories, Labour are making it abundantly clear that Scotland will always be an afterthought for Westminster. The SNP is the only party that will always be on Scotland's side.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
