GFG lost control of Whyalla steelworks — SA government forced it into administration

On February 19, 2025, the South Australian government forced GFG Alliance's Whyalla steelworks into administration, after rushing amendments to the Whyalla Steel Works Act through both houses of parliament in a morning. KordaMentha was appointed administrator; GFG, which took over the site in 2017, would no longer run it.

The site had been in crisis for months: tens of millions of dollars in unpaid royalty payments to the government, millions owed to creditors, and workers whose pay — usually late but eventually paid — had recently started slipping with 'huge lengths in time' elapsing without evidence of payment, Premier Peter Malinauskas told the ABC's 7.30.

The government's steel task force advised that the owner's financial position was 'not just deteriorating, it was likely to continue deteriorating into the future,' and the premier said the works were 'approaching a point where it would be irredeemable.' Days earlier, GFG chair Sanjeev Gupta had released a statement saying the company would sell its stake in a New South Wales coal mine to repay Whyalla creditors.

The government explicitly rejected a bailout — 'there was an option that we could have bailed out GFG, but we weren't going to do that' — and instead pivoted to securing steelmaking itself, with a major industry support package and Bluescope floated as a potential buyer.

More than $300M in GFG debts; tens of millions in unpaid royalties to the state; control of the steelworks handed to administrators

GFG ran the state's critical steelworks while owing more than $300M, letting royalty and creditor obligations slide for months.

The owners had no credible path back: the government's own task force saw the financial position worsening without end.

GFG's last-minute asset-sale pledge did not address the operational crisis — workers and small contractors going unpaid.

The premier chose to separate the asset's future from its owner's finances, removing GFG's leverage entirely.

Buying iconic industrial assets on thin equity works until working capital dries up — and when it does, governments will rescue the asset, not the owner.

As of February 19-20, 2025: KordaMentha was stabilizing the business while suitable buyers were sought; the premier said he had 'reason to believe' Bluescope may be interested, and Bluescope's CEO confirmed contact. Malinauskas announced 'one of the most comprehensive industry support packages that this nation has ever seen' the next day alongside the Prime Minister, while GFG said it was 'seeking advice' on its options and stressed InfraBuild was a separate entity.