GFG Alliance has welcomed the South Australian government’s announcement on funding guidelines to co-finance operational efficiency projects at the Whyalla Integrated Steelworks.
It is the first step in releasing a $50 million grant that will fund approved projects to be matched on a “dollar for dollar” basis by the GFG Alliance. The state government announced the grant to support the new owner of the integrated steelworks when it was in administration. GFG Alliance has been in regular dialogue with government about its plans to upgrade the steelworks.
Under the guidelines, approved projects should result in such things as improved product quality or plant efficiency, reduced unit production costs, introduction of new value-added products, or increased and innovative employment opportunities at the steelworks.
An approved project must commence within 12 months of approval by the government and be finalised within three years of approval. The steelworks’ will also be required to provide regular project specific reports.
Jason Schell, Executive Managing Director Primary Steel, said:
“The objective of the $50 million grant is to contribute to approved projects that aim to improve the productivity and efficiency of the Whyalla’s Integrated Steelworks.”
“Our team is working to advance strategic upgrade project proposals that qualify for government funding, while we continue to progress our long term GREENSTEEL Transformation plan at Whyalla.”
Sanjeev Gupta, GFG Alliance Executive Chairman said:
“We welcome the announcement made by the Marshall Government, honouring a government commitment made at a time when the business and local community was facing an uncertain future.
“The local team has worked hard to register record-breaking performances. Through an operational efficiency drive, continuous improvement initiatives and favourable market conditions underpinned by investment in infrastructure, we have turned performance around.
The proposed grant is in addition to the significant investment the GFG Alliance has already made in plant and equipment to improve the efficiency of the Whyalla Steelworks and mining operations.