Whyalla's steelmaking gap could last years as potential job losses mount
A resumption of steelmaking in Whyalla could be several years away, following the announcement that hundreds of jobs will go because of the demise of the blast furnace.
The closure of Whyalla's blast furnace has led to the potential loss of nearly 800 jobs at the South Australian steelworks, with workers and contractors uncertain about their future. The 60-year-old blast furnace, a critical piece of infrastructure, has been offline since April, and experts estimate it could take between two to four years before steelmaking resumes at the site.
Two bidders, Jindal Steel and M Resources, are in the running to purchase the steelworks, while BlueScope Steel retains the right of last offer. The resumption of steelmaking could be several years away, as the new buyer will need to replace the coal-fired furnace with an electric arc furnace before restarting production. South Australian Premier Peter Malinauskas advised caution when considering the initial job loss figure, as some contractors have work elsewhere.
Mayor Phill Stone acknowledged the abruptness of the blast furnace's end, stating that the region will still be producing rail line steel during the transition period. While the government has announced support measures, some affected workers may need to relocate. Experts predict a new modern steelmaking facility in Whyalla within three years, contingent on a successful sale and secure funding.
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