TheWhyalla Steelworks is a fully integratedsteelworks and the only manufacturer of rail in Australia. It produces 75% of all structural steel in Australia. Iron ore is mined in theMiddleback Range to feed the steelworks, resulting in the distribution of finished steel products of over 90 different grades. It occupies a 1,000-hectare (2,500-acre) site on the shore ofFalse Bay,Spencer Gulf and is the largest employer inWhyalla,South Australia.

Opened in 1941, along with a majorshipyard, the steelworks were owned byBHP, and many of the vessels were produced for the use ofBHP Shipping. The shipyards were closed in 1978. OneSteel, laterArrium was a company spun out from BHP in 2000, and owned the steelworks until the company went into administration in 2017. It was bought byLiberty House Group, a subsidiary of the British companyGFG Alliance, owned bySanjeev Gupta, and the OneSteel brand was changed to Liberty OneSteel. After the company had incurred massive debts, theSouth Australian Government forced it into administration in February 2025, and thefederal government announced a $2.4 billion joint state-federal support package for Whyalla and its steelworks.

The Whyalla Steelworks receives iron ore mined at various sites along theMiddleback Range. Iron ore mining in this region dates back to at least 1900. Prior to the steelworks' construction, the ore was shipped fromWhyalla (then known as Hummock Hill) toPort Pirie for use as aflux in smelters.^[1] It was later supplied to steel-making facilities atPort Kembla, New South Wales. The first shipment of iron ore by sea for Port Pirie departed Whyalla in 1903. The first mines to be developed wereIron Knob and Iron Monarch, with later developments includingIron Baron, Iron Knight, Iron Princess, Iron Chieftain and Iron Duke. The mines were developed byBHP, which went on to develop the steelworks and shipyards.

The steelworks first established a plant for the production ofpig-iron for sale or use at other BHP plants. The announcement was made in 1937 and South Australian legislation was prepared to facilitate the development.Water security for the project was also guaranteed by the development of theMorgan-Whyalla pipeline.^[1] The Whyalla Steelworks was opened in May 1941 with the firstblast furnace "blown in". A shipyard was also constructed, designed to aid theBritish Commonwealth's efforts inWorld War II. After the war, the steelworks and shipyards continued to produce a range of products includingrail track and maritime vessels for commercial use.

In the 1960s, aBOS rolling mills and coke ovens were constructed, enabling the Whyalla plant to become a fully integrated steelworks.

Various records were set and milestones met by the Whyalla shipyards. In 1947, Australia's largest domestically built vessel, the bulk carrierIron Yampi, was launched. It was built for BHP Shipping to transport iron ore fromYampi Sound in Western Australia.^[2] In 1965, the honor was claimed again, when theDarling River was launched.^[3] With the launch of the tankerArthur Phillip in 1974, the Whyalla shipyard passed a major milestone, having produced over one million tonnes of merchant vessels in total.^[4] The shipyard also produced the world's first gas turbine-electric powered ship, theSeaway Prince in 1975.^[5]

BHP's shipyards continued to operate until 1978. Many of the vessels were produced for the use ofBHP Shipping. The eventual closure of the shipyards came as a major blow to the town of Whyalla and plunged it into aneconomic recession, with 1,800 workers made redundant.^[6]

This sectiondoes notcite anysources. Please helpimprove this section byadding citations to reliable sources. Unsourced material may be challenged andremoved.(February 2025) (Learn how and when to remove this message)

• Blast Furnace No.1 was built between 1938 and 1941, blown in 1941, relined in 1965, closed in 1981 and demolished 1997.
• Blast Furnace No.2 was built in 1965, relined 1981 and again in 2004.
• The boilerhouse was built in 1941 with three boilers. Boiler No.4 was added in 1950 and Nos. 5 and 6 in the late 1960s. Only Nos. 5 and 6 remain in full-time operation,^[when?] with No.4 on standby.
• The saltwaterpump house was built in 1941 with three salt water pumps, with another three pumps added later. Only five remain, with No.1 later serving as a backup diesel pump.
• The coke ovens were built in the 1960s with two batteries. Another battery was added in the 1980s. The coke ovens were closed in 2023.
• A 1.5 GLreverse osmosis seawaterdesalination plant was commissioned in December 2011.

In October 2000, BHPspun off a new company, OneSteel, a domestically focused steel manufacturer and distributor.^[7] Apart from the steelworks, it also owned Whyalla harbour, and iron ore mining operations along theMiddleback Range, about 50 km (31 mi) west of Whyalla.^{[citation needed]} In 2011, the steelworks employed 1,600 people, down from a peak of around 6,000.^[6]

After Arrium got into financial difficulties, with debts of more than A$4 billion, it was placed intovoluntary administration underKordaMentha in 2016. After 14 months, KordaMentha chose a Korean consortium supported byPOSCO. However, the state government chose a different bidder.^[8] In September 2017, British-ownedLiberty House Group, a subsidiary ofGFG Alliance, owned by British businessmanSanjeev Gupta, acquired the Arrium Mining and Arrium Steel businesses, including Australia's main steel manufacturer and distributor, OneSteel.^[9][10] The OneSteel brand was changed to Liberty OneSteel and Arrium Mining was renamedSIMEC Mining.^[9] At this time the steelworks had 3,000 employees, who took a 10% pay cut in order to make the sale more acceptable.^[11][12] Soon afterwards, Gupta purchased a majority stake in Adelaide-based renewable energy companyZEN Energy.^[8]

In December 2017 Gupta announced a transformation of the steelworks costing $1 billion, intended to increase its output from about half to 1.5 million tonnes per year, and reduce costs of producing steel, as well as adding new offerings and widen the market.^[8] OneSteel lost A$195m in the 2018 financial year. Gupta said that he had invested money in the company, including plans to upgrade the plant at Whyalla^[12] which included a A$700m solar, battery, andpumped hydro project to power the steelworks, via Zen Energy, another GFG Alliance subsidiary.^[13] He also had plans to construct the 280-megawattCultana Solar Farm outside Whyalla (later abandoned).^[8]

In 2019, GFG asked the government for state backing to loan money. By June 2020, it emerged that some contractors had not been paid.^[8] In March 2021 GFG's major lender,Greensill Capital collapsed, and GFG tried to sell Cultana. In October of that year, good profits from the steelworks went towards the repayment of GFG Alliance's creditors, and it was able to restructure its international debts.^[8]

In February 2024 the state government signed an agreement to sell hydrogen to GFG from its planned 200MW hydrogen power plant near Whyalla, which would enable the production ofgreen steel. Gupta said that he aimed to make the steelworkscarbon neutral by 2030.^[8] The blast furnace was plagued by technical problems in 2024, rendering it unusable from mid-March until early July. Many staff had their shifts and wages cut during this time.^[8] In August 2024, GFG owed many more contractors tens of thousands of dollars, causing problems to their businesses, and the blast furnace once again had to shut down, this time owing to a shortage of coking coal.^[8] GFG'shematite mining operations under SIMEC were running into trouble, leading to further financial difficulties for the parent company. In November 2024 GFG Alliance secured a $150 million loan, which Gupta said he would use the money to help pay its suppliers as well as fixing the blast furnace.^[8]

In early February 2025, Gupta announced that he would be selling part or all of GFG's stake in its coal mine in New South Wales, in order to free up cash to pay suppliers.^[8] On 19 February 2025, theSouth Australian Government amended theWhyalla Steel Works Act 1958 to ensure that the steelworks would go into administration, in part due to the dire financial situation of GFG Alliance, withKordaMentha to take over as administrators^[14] of OneSteel Manufacturing Pty Ltd.^[15] This came after many months uncertainty for workers, and the Liberty's unpaid debts totalling more thanA$300 million, includingroyalty payments to government as well debts to other creditors.^[16] On 20 February, thefederal government underAnthony Albanese announced a $2.4 billion joint state-federal support package for Whyalla and its steelworks, which includes immediate, short-term, and long-term spending plans. SA PremierPeter Malinauskas said that it was not abailout for GFG, and that Gupta would have to pay the company's debt to the state, after they had paid the creditors and got the steelworks rolling again.^[17] On 28 February 2025 it was reported that creditors of the Whyalla Steelworks are owed more than A$1 billion, of which GFG Alliance says that it and its subsidiaries (the steelworks' largest creditors) are owed $500 million.^[18]

In 2024, Whyalla Steelworks was responsible for 75% of steel production in Australia.^[16]

The iron-making department incorporates theblast furnace,coke ovens, and the power and services departments of the Whyalla steelworks. Molten iron is supplied from here to theBOS for manufacture into steel.Coke is produced on site from coal supplied to the plant fromNewcastle orPort Kembla and ships are loaded with iron ore for shipment from Whyalla's port. Finished steel products are distributed by sea, road, and rail.

Approximately 1.2 million tonnes of raw steel is^[when?] produced in the steelworks each year, with about 65% of that transferred by rail to Market Mills as billets for further processing. The balance of the steel is then converted to finished products at the Whyalla Rolling Mill. These products service the construction and rail transport industries.

In 2020, the slip at the former shipyard was recommissioned as a facility to decommission, scrap and recycle (DSR) large ships. It was reported to be the only facility in Australia capable of handling ships over 200 m (660 ft). The first ship through the facility was the formerHMAS Success. The initial deconstruction work was done byMcMahon Services atPort Pirie before the hull was moved across Spencer Gulf to Whyalla.^[19]

The Broken Hill Proprietary Company (BHP) was responsible for bringing electricity to the townships of Iron Knob, Whyalla, their associated mines and ultimately the Whyalla steelworks. This was achieved by the construction of three powerhouses and network infrastructure to reticulate the power.^{[citation needed]}

BHP commenced power supply to Whyalla in 1908 and Iron Knob in 1922.^[20] A second powerhouse was built in the 1920s to replace the first and was decommissioned in late 1941 (though it was still standing in the 1990s). The third powerhouse was built in 1941 as part of the No.1 Blast furnace. It features two turbo alternators and two turbo blowers and remains in operation. It provideselectricity for use around the plant and air to the blast furnace. Compressed air is also utilised around the plant by a number of other departments.^{[citation needed]}

The South Australian grid, run by the thenElectricity Trust of South Australia (ETSA), was extended to Whyalla by the late 1950s. While the town's supply was progressively transferred to ETSA during the 1960s, BHP continued to supply much of its own needs and those of some other customers that were not economic to transfer to the ETSA network. As BHP's power needs grew it began to use grid power for a greater portion of its own needs.^[20] However, as of 2016 the steelworks continues to generate its own electricity to lower its energy costs and increase security of supply.^{[citation needed]}

In 2005, Whyalla Steelworks had 66.5 MW of dedicated electricity generating capacity on-site. 57.5 MW of this capacity consisted of three turbo alternators driven by steam raised in various boilers, fired primarily by waste blast furnace andcoke oven gases. The boilers can also be fired with supplementary fuel oil and natural gas. The boilers also provide steam for process use around the plant. Two 4.2 MWgas turbines operate exclusively on purchasednatural gas.^[20] Despite this on-site capacity, the plant relies on purchased electricity for a substantial portion of its needs, and only exports power to the grid occasionally. Plans for the associated 280 MWCultana Solar Farm were abandoned in 2021.^[21]

Santos has supplied gas to the steelworks for several years, and in February 2025 signed anMoU withGFG Alliance to start discussions to reduce emissions from the steelworks.^[22]

TheWhyalla Hydrogen Facility was a proposed 250MWe hydrogen electrolyser (producinggreen hydrogen), a 200MW combined cycle gas turbine generator, and 3600-tonne hydrogen storage facility.^[23][24] ASouth Australian Government company called Hydrogen Power South Australia was established to own and operate the plant, which is expected to be completed in 2025 and begin operations in 2026.^[23]ATCO Australia,BOC, andEpic Energy would deliver the plan,^[25] in which the government has investedA$593 million.^[26] In February 2024, the government signed an agreement with GFG Alliance reaching "to explore opportunities for hydrogen offtake" from the WHF.^[22] It would supply power to the steelworks to producegreen steel.^[22] The project was cancelled in 2025.^[27]

The Whyalla Steelworks draws the majority of its required water from theMurray River, via the Morgan-Whyalla pipeline. In December 2011, areverse osmosis seawaterdesalination plant was commissioned. Capable of producing 1.5 GL of water per year, the plant allows Arrium to reduce Murray River water consumption by up to 25%.^[28] The brine from the plant is discharged into settling ponds which flow into the waters ofFalse Bay,Spencer Gulf.

A rail network exists within the steelworks. Built as a narrow gauge network, it was converted to standard gauge in the 1960s.^[29] In 1901, a line opened from Whyalla to Iron Knob. In 1930, a branch opened from Middleton Junction to Iron Baron. The latter closed in 1947 being reopened in 1958. In 1990, it was extended 40 kilometres from Iron Baron to Iron Duke.^[30] After iron ore production ceased at Iron Baron in 1991 and Iron Duke in 1998, the line from Middleton Junction closed. With the reopening of the Iron Baron Mine in mid-2012, the line reopened to Iron Baron.^[31][32]

In October 1972, the 74 kilometreWhyalla railway line opened primarily to serve the Whyalla Steelworks.^[33][34]

Dust emissions from the Whyalla steelworks have been considered as a potential cause of elevatedlung cancer incidence among residents of Whyalla. Between 1999 and 2004, 95 cases of lung cancer were recorded – 32 more than theGovernment of South Australia's Department of Health anticipated based on studies of other regions in the state.^[35] Concerns regarding emissions and their health impacts came to a head between 2005 and 2007, largely due to the efforts of the community-led Whyalla Red Dust Action Group (WRDAG). Residents of East Whyalla and students of the Whyalla Town Primary School were believed to be worst impacted due to their proximity to the source.Australian Greens candidate and environmental lawyerMark Parnell represented the WRDAG.^[36] The public controversy was predicated by a legal case heard in theEnvironment, Resources and Development Court in 2005,EPA v. OneSteel. The case evaporated after OneSteel successfully renegotiated the terms of their governing Indenture Act, with the support of the Government of South Australia.^[37]

OneSteel responded by incorporating new processes into the design of "Project Magnet". By proposing to transport ore from the Iron Duke mine in aslurry pipeline, the company hoped to reduce opportunities for the emission of excessive red dust. The project was supported by acting PremierKevin Foley. The project represented a $395 million investment in the development of Whyalla's economy with coincidental environmental benefits.^[38]

TheAustralian Democrats' leaderSandra Kanck was critical of the removal of the Minister for the Environment from the role of overseeing emissions licensing for OneSteel, concerned that the sole ministerial responsibility for the company's emissions was now left in the hands of the Minister for Mineral Resources.^[39] The government eventually modified the licensing conditions for the facility's allowable airbornepollution emissions, which included reducing the number of days per year that excessive dust was permitted. Breaches could incur a fine of up to $120,000.^[35] The company was required to report monthly to the SA Government with emissions reports and details of any remedial actions taken.^[40]

OneSteel eventually worked with the Whyalla Red Dust Action Group and sustainability consultants to address the community's issues and work towards a feasible solution. It said that Project Magnet was successful in addressing the red dust issue, mainly through the introduction of a wet crushing process in 2007. The company committed to working with council and community groups to improve the visual appearance of dust-impacted areas in Whyalla.^[41] The WRDAG was disbanded in 2010 after agreement that the red dust issue had been addressed.^[41]

• Whyalla Barson

• Butler, Ben (19 October 2019)."Trouble at the mill: Sanjeev Gupta on Whyalla and its 'fundamental problems'".The Guardian. (OneSteel lost $195m in the 2018 financial year.)

• Infrabuild (formerly OneSteel)

Media related toWhyalla steelworks at Wikimedia Commons

• Ironworks and steelworks in Australia
• Shipbuilding companies of Australia
• Industrial buildings in South Australia
• Whyalla
• Manufacturing plants in Australia
• 1941 establishments in Australia

• Webarchive template wayback links
• Articles with short description
• Short description matches Wikidata
• Use dmy dates from November 2019
• Use Australian English from February 2025
• All Wikipedia articles written in Australian English
• Articles needing additional references from February 2025
• All articles needing additional references
• All articles with vague or ambiguous time
• Vague or ambiguous time from February 2025
• All articles with unsourced statements
• Articles with unsourced statements from February 2025
• Articles with unsourced statements from March 2024
• Commons category link is locally defined