The administrators of Whyalla’s troubled steelworks have launched legal proceedings in the Federal Court, seeking control of the adjacent port from GFG Alliance. KordaMentha, the firm appointed to oversee the steelworks’ administration, is arguing that without control, it cannot move forward with plans to sell the facility to a new operator.
The port, currently leased to a GFG subsidiary known as Whyalla Ports, plays a vital role in shipping both steel and iron ore from the Upper Spencer Gulf. The administrators are asking the court to invalidate the existing lease, which GFG has refused to relinquish voluntarily.
Administration Triggered by Financial Collapse
OneSteel Manufacturing, the GFG-owned company running the Whyalla steelworks, was placed into administration in February 2025 by the South Australian Government due to long-standing financial difficulties. This came after the state passed special legislation to take control of the facility, although that legislation did not cover the port lease.
The administrators now say that unless they gain control, they cannot prepare the steelworks for potential buyers.
“In order to commence the sale process, we need to resolve issue,” said Michael Korda, one of the administrators, in an affidavit to the court. “Any prospective buyer will require assurance of access to port facilities before committing to the purchase.”
Urgent Call for Judicial Intervention
With time and money running out, KordaMentha is requesting urgent judicial relief. They argue that the lease held by Whyalla Ports is obstructing their ability to sell the business as a functioning operation.
“The lease arrangement needs to be set aside,” Mr Korda added. “We must be in a position to offer a clear and marketable title to the port services in any sale negotiations.”
Despite the legal dispute, port operations remain ongoing. Steel and iron ore shipments continue, although uncertainty looms over future control of the port and its operations.
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Government Backs Legal Move
South Australian Treasurer Stephen Mullighan voiced his support for the legal challenge, calling it a “necessary step” to ensure the continued viability of the steelworks.
“This action is to guarantee unfettered access to the port,” Mr Mullighan explained. “We need that access to maintain steel production and keep exports flowing from Whyalla.”
The Treasurer clarified that the reason the port wasn’t included in the state’s initial intervention was due to its status as a separately owned and operated facility, hence the need for Federal Court involvement.
Clock Ticking on Financial Lifeline
The urgency of the legal move is underscored by looming financial deadlines. KordaMentha has warned it cannot continue the administration beyond August without additional funding. The $2.4 billion support package from the federal and state governments, which has kept operations afloat since February, is expected to run dry within six months.
“If further funding is not secured, we are unlikely to sustain operations past August,” Mr Korda said.
His affidavit outlines the administrators’ two-step strategy: first, to stabilise the business, and second, to seek a buyer who can resume long-term operations. Control of the port, they maintain, is essential for both steps.
Revival Under Administration
Since taking over, KordaMentha has reportedly made significant improvements in the steelworks’ operations. According to the state government, both productivity and safety standards have improved under their leadership.
“Our understanding is that the administrators have restored the facility to a far more productive state,” said Mr Mullighan. “We don’t want anything—especially access issues—to slow down or halt those gains.”
The steelworks has historically been a major employer and industrial hub in the Upper Spencer Gulf region. However, its decline under GFG Alliance left workers, suppliers, and the state with mounting debts. Unpaid royalties and outstanding dues amount to nearly $1 billion, with the state itself owed tens of millions.
GFG Yet to Comment
As of now, GFG Alliance has not issued a statement in response to the legal action. The company, founded by British industrialist Sanjeev Gupta, has faced scrutiny over its financial stability in recent years, with its global empire of metal businesses often under pressure from creditors and regulators.
The outcome of the court proceedings will likely determine not just the future ownership of the port, but also the fate of the broader steelworks and its role in the South Australian economy.
What Lies Ahead?
The Federal Court is expected to treat the matter with urgency, given the funding deadline and the critical role the port plays in the steelworks’ operations. A favourable ruling for KordaMentha would clear a major hurdle in the process of selling the facility, while a delay or denial could jeopardise its long-term survival.
For Whyalla, a town with its identity and livelihood closely tied to the steel industry, the coming months will be pivotal. Whether the steelworks can find new life under a different owner may ultimately hinge on who controls the port gates.
