Save You have reached your maximum number of saved items. Remove items from your saved list to add more. TOTOTO An Indian steel giant has placed its decarbonisation credentials and global turnaround record at the center of its late-stage bid to take over the collapsed Whyalla steelworks as a long-running sale process narrows down to
An Indian steel giant has placed its decarbonisation credentials and global turnaround record at the center of its late-stage bid to take over the collapsed Whyalla steelworks as a long-running sale process narrows down to two remaining contenders.
Jindal Steel, part of a multibillion-dollar industrial conglomerate, is locked in a head-to-head battle with M Resources, an Australian mining and investment firm run by coal billionaire Matt Latimore.
The two bidders are vying to take over the historic steelworks 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 company was placed into administration just over a year ago, due to tens of millions of dollars in unpaid debts and royalties.
In a community deeply scarred by Gupta’s turbulent departure, Jindal is imploring those concerned about returning the plant to foreign ownership to look to his record in the Middle East as proof of his ability.
Since acquiring a half-finished steel complex in Oman in 2010, the company had invested in transforming the asset into a profitable and efficient integrated steel complex that boasts one of the lowest carbon footprints of any operator in the region.
“I think no one should believe anyone’s promises; they should only trust the evidence, and the evidence should be a proven track record of what is needed here,” Harssha Shetty, director of Jindal Steel International, said in an interview.
“What we’ve done over the last 15 years is there for everyone to see.”
The sale is being closely watched by the federal and South Australian governments, which have offered up to $1.9 billion in funding for the winning bidder to upgrade the steelworks into 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 plan that the group has successfully executed on the global stage.
The company plans a phased replacement of the aging Whyalla coal blast furnace with “direct reduced iron” technology, which would initially run on natural gas, and an electric arc furnace to melt scrap into molten steel. This would mirror the infrastructure deployed in Oman and could potentially reduce emissions by 30 percent.
“If you look at the history of Oman, it is a carbon copy of what we want to do in Whyalla,” Shetty said. “For us, it’s plug-and-play.”
However, Jindal faces stiff competition from M Resources, which has presented its alternative bid as being in the national interest. Latimore has described Whyalla’s high-quality iron ore and steelmaking assets as a natural fit for M Resources, saying he would do “the best I can to secure these assets in Australian hands”.
“If our consortium were to secure this transaction, it would mean placing these assets in the hands of a well-credentialed, Australian-led consortium,” Latimore said.
“We will focus on bringing assets to their maximum operating value – that means building a sustainable business to provide security for the workforce and 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 mine-to-metal steel complex, its highly skilled workforce and supportive community.
“I went to the workshop and met with senior management: they are ready to accept change, they are hungry for change,” he said.
“The community is the center of our operations and technology change is our expertise.”
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Nick Toscano is a business reporter for The Age and Sydney Morning Herald.Connect through X either email.From our partners
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