A giant Indian steelmaker has placed its decarbonisation credentials and global turnaround record at the centre of its final-stage pitch to take over the collapsed Whyalla steelworks as a long-running sale process narrows to two remaining contenders.
Jindal Steel, part of a multibillion-dollar industrial conglomerate, is locked in a head-to-head battle with M Resources, Australian mining and investment firm led by coal billionaire Matt Latimore.
The two bidders are vying to acquire the historic steel mill north of Adelaide and its local iron ore mines and port facilities from administrators.
The assets were previously owned by British billionaire Sanjeev Gupta’s GFG Alliance, but the business was pushed into administration just over a year ago, owing tens of millions of dollars in unpaid debts and royalties.
In a community deeply scarred by Gupta’s turbulent exit, Jindal is imploring those worried about returning the plant to foreign ownership to look to its record in the Middle East as proof of its capability.
Since acquiring a half-completed steel complex in Oman in 2010, the company had invested in transforming the asset into a profitable and efficient integrated steel complex boasting one of the lowest carbon footprints of any operator in the region.
“I believe no one should believe anyone’s promises – they should only trust the proof, and a demonstrated track record of what is needed here should be the proof,” Harssha Shetty, director of Jindal Steel International, said in an interview.
“What we have done for the past 15 years is there for all to see.”
The sale is being closely watched by both federal and South Australian governments, which have offered up to $1.9 billion in funding for the winning bidder to upgrade the steelworks to a “modern, low-emission” facility.
Jindal is stepping up efforts to leverage the depth of its operational experience and arguing that ensuring Whyalla’s future prosperity requires more than just capital; it demands a battle-tested blueprint that the group has successfully executed on the global stage.
The company plans a staged replacement of Whyalla’s ageing, coal-fired blast furnace with “direct reduced iron” technology, which would initially run on natural gas, and an electric arc furnace to melt scrap metal into molten steel. This would mirror the infrastructure deployed in Oman, and could potentially reduce emissions by 30 per cent.
“If you look at the Oman story, it’s a carbon copy of what we want to do in Whyalla,” Shetty said. “For us, it’s a plug-and-play.”
However, Jindal faces stiff competition from M Resources, which has pitched its alternative bid as in the national interest. Latimore has described Whyalla’s high-quality steelmaking and iron ore assets as a natural fit for M Resources, and said he would be putting his “best foot forward to secure these assets in Australian hands”.
“If our consortium were to secure this transaction it would mean placing these assets with a well-credentialed Australian-led consortium,” Latimore said.
“We will be laser-focused on bringing the assets to their full operational value – that means building a sustainable business to deliver security for the workforce and the community.”
Shetty, who visited Whyalla two weeks ago, said he had returned with an even stronger conviction in Whyalla’s revival and long-term prospects, pointing to its unique position in the industry as an integrated mines-to-metal steel complex, its highly capable workforce and supportive community.
“I went onto the shop floor, and met with senior management – they are ready to embrace change, they are hungry for change,” he said.
“Community is at the core of our operations, and technology switching is our expertise.”
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Nick Toscano is a business reporter for The Age and Sydney Morning Herald.Connect via X or email.From our partners
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