Whyalla Steelworks Administrator spends $ 100 million on improving the site

An update on the administration of the Whyalla Steelworks in South Australia has today informed the science of employees and creditors that the Kordamentha manager has been published by the Kordamentha manager.

The South Australian government forced the Steelworks in the administration in February after the company, owned by GFG Alliance, did not pay tens of millions of dollars to royalty payments to the government and millions of unpaid accounts of creditors paid.

Kordamentha partner Sebastian Hams said that the $ 100 million had been spent on repairing the inventory, supporting capital expenditure and improving the safety of the site.

He said that site visits of potential buyers were going on.

Regarding the inclusion of the debts of Whyalla Ports PTY LTD, Mr Hams said that the administration was only more than one steel production PTY LTD.

“[Whyalla Ports] Is not in administration, and that is why I have to assume that the company is a solvent and that it will pay its debts if and when they are owed. “

Hams said that the blast furnace in Whyalla now operated on its full capacity of 2,800 tons a day, “which means it is now in a stable environment,” but the lifespan was uncertain.

“The new buyer will come in with new technology and a different mindset, so it is completely dependent on what a new buyer wants to do,” he said.

Hams would not reveal how much the loss in the daily profit was reduced.

“The loss before the approach was around $ 1.5 billion a day,” he said.

“It goes up daily, but it is considerably less.

“We are really focused on looking for a buyer who is a manufacturer who understands steel … and understands the value in the mines.”

The state government has moved to clarify the ownership of the port of the port by introducing changes to the legislation in parliament on Tuesday.

Prime Minister Peter Malinauskas told the Parliament that the government would introduce amendments in the Whyalla Steelworks ACT to show that the port was owned by the former Steelworks owner Onesteel Manufacturing.

Finding ‘The Hard Way’

A creditor who wanted to remain anonymous told the ABC that they owed $ 100,000 to $ 200,000 by Whyalla Steelworks, with 10 to 15 percent of this only from the port.

They said they feared that they would never receive the money owed from Whyalla Ports PTY LTD because of the dispute about ownership.

“I don’t think it will happen unless we have put a question of the question in GFG, Sanjeev Gupta and his stakeholders,” they said.

“We are now going on legal advice.”

Another creditor who did not want to be identified, said that they owed $ 20,000, outstanding for about seven months after the expiry date of payment.

They said they did not realize why Alla Ports was a separate company until a few weeks ago.

“If we had known that, we would probably have done things a little differently with regard to the Whyalla ports,” they said.

“A bit disappointing that we had to discover the hard way.”

Safety and transparency first

Steelworks employees Sue Kelly said that the safety of the factory was seriously lacking under GFG Alliance, but it had become “much better” since Kordamentha took over.

“Even to the degree of our … PPE [personal protective equipment]”Said Mrs. Kelly.

Australian Workers Union Local Branch Organizer Shane Karger said it was “fantastic to bring the real situation to the people”.

“To develop a relationship that we now have with Kordamentha that is open and honest, is definitely something that we would like to keep with new buyers in the future,” he said.

“We would not like to achieve a situation in which it is all cloak and dagger again, they are all secrets behind closed doors, and for eight years on the track we are ‘Oh no, the Steelworks is in trouble again’.”

GFG Alliance is contacted for comment.