Dozen potential buyers show interest in Whyalla steelworks

BlueScope today confirmed it has headed up a consortium of several global steelmakers in the sale of the embattled South Australia plant.

The steel giant said it will lead an international consortium with Japanese, Indian and Korean steelmakers – collectively worth $115 billion in market capitalisation – to potentially acquire the Whyalla assets.

South Australia's Whyalla Steelworks has drawn significant international interest.

It has entered into a collaboration agreement with Nippon Steel Corporation, JSW Steel Limited and POSCO to form the consortium and submit a non-binding expression of interest.

"The consortium has identified Whyalla as a prospective location for future production of lower emissions iron in Australia for both domestic and export markets, with the potential to play an important role in the decarbonisation of the global steelmaking industry," Bluescope said in a statement.

"Should the consortium be invited to participate in the next phase of the sale process, the consortium will jointly conduct due diligence and engage with the South Australian and Federal governments regarding the announced funding support to maintain a sustainable steel industry in the region."

The company said any attempt to acquire Whyalla would be subject to "hurdles", including due diligence.

BlueScope, along with Nippon, POSCO and JSW, are among the biggest steel companies in the industry.

However, South Australian Energy and Mining Minister Tom Koutsantonis told the ABC it was not yet time to "pop the champagne corks".

It is anticipated a sale will not be complete until the second half of 2026.

"But we are on the right track, and we are meeting the milestones we hoped to meet," Koutsantonis said.

The sale of Whyalla Steelworks has generated significant global interest.

More than 15 international and local entities have passed the expression of interest phase.

In June, selected companies were given access to the steelworks' financial records to facilitate the submission of initial offers.

Whyalla Steelworks' administrators, KordaMentha, are handling the sale.

The steelworks were stripped from Sanjeev Gupta's GFG Alliance and placed into administration in February by the state government.

SA Premier Peter Malinauskas said the decision came after the government lost confidence in GFG to pay its bills and secure funding needed for the ongoing operation of the steelworks.

Prime Minister Anthony Albanese and Malinauskas announced a $2.4 billion package to save the steelworks after its operator was placed into administration in February.

The package included $100 million for immediate on-the-ground support, with $50 million set aside for creditor assistance payments.

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