Australian steelmaker BlueScope will lead a consortium bidding to acquire the troubled 1.2mn t/yr Whyalla steelworks in South Australia (SA), which entered administration on 19 February.
BlueScope has partnered with Japan’s Nippon Steel, India’s JSW Steel and South Korean trading firm Posco, after identifying Whyalla as a prospective location for future production of lower-emissions iron, the firm said on 4 August.
The consortium, which has a total steelmaking capacity of about 130mn t/yr, has submitted an expression of interest with options for the Whyalla assets. This includes port infrastructure and a 9mn t/yr iron ore export business, previously operated by UK-based GFG Alliance.
The consortium will undertake due diligence and engagement with state and federal governments if invited to participate in the next round of the sale process.
Canberra and SA have together pledged nearly A$2.66bn ($1.72bn) in support to keep the steelworks running. The federal Labor government is aiming to boost Australia’s renewable energy output to build an export industry based on low-emissions metals processing.
BlueScope also operates the 2.1mn t/yr Port Kembla steelworks in New South Wales, which produces flat steel products. Meanwhile, Whyalla is a long steel producer. The two blast furnaces are the only such facilities that remain in Australia.