PM Albanese announces a $2.4b plan to save Whyalla steelworks, but is it too little, too late?

Prime Minister Anthony Albanese has announced a $2.4 billion rescue package to keep Whyalla steelworks afloat after the site was forced into administration. The deal, a joint effort between the state and federal governments, is being sold as a national investment in Australia’s steel industry—but critics question whether it’s just a temporary bandage on a deeper wound.

Albanese visited the South Australian town, reassuring workers that the package wasn’t just about the present but securing the industry for generations to come. “We want to make sure there’s a fifth, sixth, and seventh generation of steelmakers in Whyalla,” he told a gathered crowd, stressing that 75 per cent of Australia’s structural steel is produced at the site.

The collapse of Whyalla steelworks, owned by Sanjeev Gupta’s GFG Alliance, follows months of financial turmoil. On Wednesday, the South Australian government stepped in, placing the site into administration to prevent a total shutdown. Creditors are owed at least $300 million, and without intervention, thousands of jobs were at risk.

The $2.4 billion package is structured into three phases. The first $100 million will provide immediate relief, including $50 million for creditor assistance and $33 million for urgent infrastructure repairs. Another $384 million will keep the steelworks operational during the administration period, ensuring workers and contractors remain employed. The largest chunk—$1.9 billion—is earmarked for long-term infrastructure upgrades under a new owner.

The federal government is also creating a $1 billion green iron investment fund, with up to half of that funding available for Whyalla’s transition to a more sustainable steel production process.

Despite Albanese’s assurances, the bailout has sparked fierce debate. South Australian Premier Peter Malinauskas was quick to deny that the package was a lifeline for Gupta. “We’re not bailing out Mr Gupta,” he insisted. “His debts aren’t going anywhere—this is about the steelworkers, not the billionaire who failed them.”

Questions remain over whether the government will nationalise the steelworks if no buyer comes forward. Albanese and Malinauskas refused to rule out the option, though both stated their preference was for private ownership. “We’ve intervened to keep the steelworks running and protect jobs,” Albanese said. “But in the long run, we want this in private hands.”

For many Whyalla workers, the announcement brought relief, but also caution. Noel Goldsworthy, who has worked at the steelworks for over 50 years, called the government’s intervention a “great move” but admitted the uncertainty had taken a toll. “It’s been a long time coming. The frustration, the waiting—that’s been the worst part,” he said.

Jules Kinslow, a third-generation steelworker, was optimistic but wary. “It’s a great day, no doubt,” she said. “But we need long-term stability. My son works here, and my family runs a small business that’s been hit hard by this mess. We can’t afford another crisis.”

As Whyalla breathes a temporary sigh of relief, bigger questions loom. Will the government’s plan be enough to secure the site’s future, or is it just delaying the inevitable? And if the private sector won’t take over, how far is the government willing to go? For now, the fate of one of Australia’s most crucial industries remains uncertain.