【SMM Iron & Steel】South Australia Commits Over $2 Billion USD to Whyalla Steelworks Amid Low-Carbon Push

Published: Jun 5, 2026 15:18

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South Australia's 2026-27 budget allocates ~$228.5 million USD over two years for the Whyalla steelworks (1.2 million t/yr capacity), which entered administration in Feb 2025.

Total state and federal support has reached ~$2.05 billion USD. An additional ~$4.63 million USD supports low-carbon transition.

A 10-year gas deal with Santos (~20 PJ/yr from 2030) will enable direct reduced iron technology, cutting emissions ~50% vs. prior coal blast furnace

operations. Shortlisted buyers: M Resources (Australia) and Jindal Steel (India). (Conversions estimated at market rates on reporting date;

for reference only.)

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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