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Arrium sale brings certainty for Whyalla workers – govt

6th July 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Both the federal and state governments have welcomed a deal to save the struggling Arrium steel plant and iron-ore mining operation in Whyalla, South Australia.

The administrators of Arrium Mining and Materials earlier this week struck a deal with London-based GFG Alliance after the company submitted a modified offer for the Arrium Australia business.

Federal Minister for Industry, Innovation and Science Arthur Sinodinos said that the sales agreement was a welcome development and provided certainty for workers at Arrium, as well as the future of the Australian steel industry.

South Australian Premier Jay Weatherill and Treasurer Tom Koutsantonis have also welcomed the sale, with the Premier saying the transaction offered a bright future for the workers and their families after several months of uncertainty.

“It is critical to the sovereignty of the nation that we continue to produce our own steel, and I also thank Minister for Industry, Innovation and Science Arthur Sinodinos for continuing to work with all parties, including the state government, towards securing this outcome,” Koutsantonis said this week.

Arrium, which appointed the administrator in April, has steelmaking capacity of about 2.5-million metric tons a year. Operations include the Whyalla steelworks and port, the OneSteel steel manufacturing, distribution and recycling unit and an iron-ore mining division.

Newswire Reuters quoted an unnamed official at Newlake Alliance, which leads the South Korean consortium that was previously named preferred bidder, as saying that the group is still interested in buying Arrium. The consortium was surprised by the administrators’ decision to sell the steel and iron-ore business to GFG Alliance.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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