The administrators have harshly criticized the management of the Whyalla steelworks by its previous owner, stating that it was operating on dangerously low finances. According to the administrators, the facility was losing $1.5 million daily and owed more than $1.3 billion to its creditors. The steelworks were placed under administration after the South Australian government, which is also a creditor, lost faith in the entity operating the steelworks, led by UK billionaire Sanjeev Gupta. The administrators revealed that OneSteel Manufacturing, the entity operating the steelworks, had incurred significant losses over the past seven months, totaling $319 million. Additionally, there were only three days’ worth of essential steelmaking materials left, and minimal repairs and maintenance had been conducted at the facility. The administrator, Sebastian Hams, stated that the business was alarmingly underfunded and improperly maintained. The steelworks rely heavily on the resilience of employees and subcontractors to keep operating in challenging conditions. Both state and federal governments have provided support to ensure the continuity of operations and employee wages during the administration process. However, representatives of GFG, Gupta’s organization, have stated that they were pursuing financing options when administration was appointed, but unfortunately, the financing could not be completed.

Source: https://www.theguardian.com/australia-news/2025/mar/04/whyalla-steelworks-administration-bank-balance-gfg-ntwnfb