Media Type: Archive

The GFG business in Whyalla is currently navigating one of the most challenging periods in its history, and we understand the anxiety this creates for our people and stakeholders about the future.

Whyalla Steelworks has cast its first steel following a 4-month shut down due to operational challenges and extensive repairs.

The return of steelmaking represents a significant milestone in the ongoing monumental effort by the management team and the Whyalla workforce to rescue the plant.

Theuns Victor, GFG’s global Chief Manufacturing Officer leading the Whyalla ‘Back to Black’ taskforce said, “This is an emotional moment for me and the entire team who have worked around the clock and tackled many challenges to make a successful return to steelmaking. However, I want to caution that we still have a long way to go before the plant is stable and secure. The blast furnace is currently running at half its capacity with a number of issues yet to be resolved. At the same time we are also tackling challenges in the rest of the plant and will soon enter the EPIC Energy natural gas lateral shut down for 2-3 weeks which will add further complexity to the operations. Despite this I am very confident we will deliver the plant to stability and then to its full capacity, but this will take time and patience. I am immensely proud of the perseverance of ourWhyalla team, which will see us overcome the enormous challenges we have been facing.”

GFG’s Executive Chairman Sanjeev Gupta:
“We have deployed our best resources to rescue Whyalla and I am pleased to see the first real sign of progress towards our goal to return the plant to full production and then back to black. This is nothing less than a Herculean undertaking, steel plants of this vintage don’t do well being shut for 4 months. I commend our team for their dedication and perseverance despite ongoing headwinds and challenges. In addition to my team I want to thank all stakeholders who have been supportive of our mission, especially customers, vendors and suppliers who are bearing with us on this journey. I would like to reassure them that my commitment to Whyalla remains steadfast and we will not rest until we bring the business back to black for the long term prosperity of all our stakeholders. Back to Black is the critical foundation on which our incredible aspirations to build a green steel future for Whyalla and GFG rest.”

Media enquiries to Kelly Fedor; Manager External Communications and Media +61 404 003 175

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About GFG Alliance:

GFG Alliance is a collection of global businesses and investments owned by Sanjeev Gupta and his family. The Alliance is structured into three core industrial pillars: LIBERTY Steel Group, ALVANCE Aluminium Group, and SIMEC Energy Group. While operating independently, they are united by shared values and a commitment to creating a sustainable future for industry and society. GFG Alliance employs 35,000 people across 10 countries and generates revenues of USD $20 billion. The Alliance is a leader in sustainable industry, with a mission to become Carbon Neutral by 2030 (CN30).

Steelmaking has resumed at the Whyalla Steelworks after an expert and exceptional GFG Alliance team was able to restart the blast furnace.

The blast furnace restart operation began after an unexpected delay following a planned routine maintenance shut down in March.

A series of recent breakthroughs allowed workers in power and services, maintenance, and steelmaking divisions to return to their regular shift rosters earlier this week.

“Returning the blast furnace to normal operation was a difficult task with many setbacks and a return to steelmaking is a testament to the dedication and commitment of our skilled and expert team. To them I say thank you,” GFG Alliance Chairman Sanjeev Gupta said.

“We can now get on with producing high quality steel in Whyalla which supports our customers, workers and their families along with the rest of the Whyalla and South Australian community.”

“While we recovered the blast furnace we also began designing and working out how to best use a special purpose oxygen and natural gas lancing system which will give us more control over restarts.”

That technology is expected to be available for use in Whyalla later in the year.

“Our focus remains the future of Whyalla. We are working towards our goal of being carbon neutral by 2030, aligning the timelines for the delivery of our Electric Arc Furnace (EAF) with a Direct Reduced Iron Plant (DRI) and the expected availability of the associated operating requirements such as natural gas and hydrogen required to use our high-grade magnetite,” Sanjeev said.

ENDS

About GFG Alliance:

GFG Alliance is a collection of global businesses and investments owned by Sanjeev Gupta and his family. The Alliance is structured into three core industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group, independent of each other yet united through shared values and a purpose to create a sustainable future for industry and society. GFG Alliance employs 35,000 people, across 10 countries and has revenues of USD $20bn. GFG Alliance is a leader in sustainable industry with a mission to become Carbon Neutral by 2030 (CN30).  

GFG Alliance Chairman, Sanjeev Gupta visited the Whyalla steelworks to see progress on the blast furnace which restarted on the weekend.

Sanjeev was given a detailed briefing by lead iron and steel making engineers and project managers overseeing the restart operations. The briefing included an overview of the cause of the damage to the Blast Furnace, current progress and projected timeline for normalisation of operations of the blast furnace and steel plant.

“I want to reassure our people and the Whyalla community that we are committed to getting our plant back to normal production as soon as possible. The repair of the Blast Furnace shell has been a slow and precise exercise. It could not be rushed, our people’s safety always comes first.

“We are now seeing concrete progress. The furnace’s shell repair is completed and hot metal is flowing from the emergency tap hole.  This is an important milestone, and I have every confidence our expert team will soon bring our high-quality steel making back to normal production.”

During the visit Sanjeev took the opportunity to engage with the restart team. He acknowledged their efforts and emphasised the importance of their role.

“I’m incredibly proud of the skill and expertise of our people, we have the best in the business. And I’m grateful for their hard work and dedication in these difficult times.

While in Whyalla, Sanjeev also met with Mayor Phill Stone, and other key community stakeholders. Discussions included detailed updates on the blast furnace, steelworks and community wellbeing development projects.

“I remain committed to the future of Whyalla and achieving our ambition to be carbon neutral by 2030 through our green steel transformation.  Recently, we decided to align timelines for the delivery of our Electric Arc Furnace (EAF) with a Direct Reduced Iron (DRI) plant. Whyalla is the only producer of rail in Australia and DRI is an important ingredient to achieve the appropriate steel grade when it’s produced using an electric arc furnace.

Project timelines have been matched with the expected availability of natural gas and hydrogen required for the production of DRI using our high-grade magnetite, well within our CN30 ambition.” 

ENDS

About GFG Alliance:

GFG Alliance is a collection of global businesses and investments owned by Sanjeev Gupta and his family. The Alliance is structured into three core industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group, independent of each other yet united through shared values and a purpose to create a sustainable future for industry and society. GFG Alliance employs 35,000 people, across 10 countries and has revenues of USD $20bn. GFG Alliance is a leader in sustainable industry with a mission to become Carbon Neutral by 2030 (CN30).  

GFG Alliance has today signed a landmark agreement with the South Australian Government to explore opportunities for the supply of hydrogen from its 250MW electrolyser in Whyalla to support the transformation to green iron and steel.

GFG has also entered into a memorandum of understanding (MOU) with global energy company Santos for potential long term natural gas supply to its Whyalla operations.

LIBERTY Steel Group welcomes today’s Australian Government announcement that it will inject significant funding into the Australian steel industry including a $63.2 million grant to LPMA Whyalla, LIBERTY’s environmentally sustainable steel development in South Australia.

The Australian Government grant, announced by Minister for Climate Change and Energy Chris Bowen, will support LPMA Whyalla’s installation of low carbon Electric Arc Furnace (EAF) technology, and the integrated development of LIBERTY’s billions of tonnes of high-quality magnetite ore which will transform Whyalla into an international green iron and steel export hub.

LPMA is committed to working in close partnership with the South Australian and Federal governments to develop both EAFs and a broad range of renewable energy and greener technologies including hydrogen.

The South Australian government has committed to build the world’s largest hydrogen electrolyser at Whyalla as part of its long-term plans to ensure the continued production of high-quality Australian steel both for domestic use and to be exported to customers around the world. LPMA Whyalla in September closed its coke ovens in preparation for the shift to EAF technology.

LPMA’s parent company GFG Alliance has an industry leading ambition to become carbon neutral by 2030 (CN30).

GFG Alliance Executive Chairman, Sanjeev Gupta said:

“This grant signifies that our transition to producing greener steel is wholeheartedly supported by a government that understands the importance of retaining an industry that employs Australian workers and underpins Australian communities and businesses.

Whyalla in the not-too-distant future will be the global epicentre for manufacturing low carbon iron and steel. It has all the contributing elements required to dictate and dominate the green steel industry – location, natural resources, future ability to generate abundant renewable energy, a robust, engaged workforce, deep water port, supportive government and invested owners.”

ENDS

www.libertysteelgroup.com

www.gfgalliance.com

Note to the editors:

GFG Alliance is a collection of global businesses and investments owned by Sanjeev Gupta and his family. The Alliance is structured into three core industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group, independent of each other yet united through shared values and a purpose to create a sustainable future for industry and society. GFG Alliance employs 35,000 people, across 10 countries and has revenues of USD $20bn. GFG Alliance is a leader in sustainable industry with a mission to become Carbon Neutral by 2030 (CN30).  

www.libertysteelgroup.com

www.gfgalliance.com

Prime Minister Anthony Albanese has toured the Whyalla Steelworks as it marked another milestone in the journey to low carbon, green steel production.

Mr Albanese was joined by South Australian Premier Peter Malinauskas to mark the closure of the coke ovens and the move towards hydrogen-Direct Reduced Iron and Electric Arc Furnace technology. 

Executive Chairman Sanjeev Gupta said the business was very proud to be working with forward-thinking Governments on its green steel transformation.

“We’re extremely grateful to the Federal and South Australian government for their support and encouragement, and we look forward with confidence to delivering our green steel vision with them as partners on this journey,” Mr Gupta said. 

Mr Gupta took the opportunity to praise coke ovens’ workers after the historic final push on September 15 2023, signifying the end of producing coke from metallurgical coal on site for use in the blast furnace.

“After an incredible 55 years we must pause to recognise the vital role the coke ovens played at the steelworks and the incredible contribution of the highly skilled workers who were a part of this era,” Mr Gupta said. 

“Coal based steelmaking has helped to build the modern world but it is now time to rethink and reengineer how the steel we make can continue to build our world going forward.”

“It is an incredible testament to our values that 100 percent of the coke ovens workforce have chosen to continue with the business in alternative roles and to be part of the transformation.”

Mr Gupta said Whyalla was the ideal place to usher in the next generation of green steel making technology. 

“With our reserves of over 4 billion tonnes of high quality magnetite ore and South Australia’s natural blessings of wind and solar energy, there is no better place to usher in the next generation of steel making technology based on clean energy and green hydrogen.”  

GFG Alliance announced in April 2023 a state-of-the-art Electric Arc Furnace (EAF) had been ordered and would replace the existing coke-fed blast furnace. 

Coke will be imported for use in the blast furnace until the installation of the EAF.

Notes

• Hydrogen provides a key to a carbon-neutral iron making process and can be used in place of coking coal as a reducing agent to produce direct reduced iron – with the by-product being water.
• Our magnetite resource is of the highest quality available anywhere in Australia and through our Magnetite Expansion Project (MEP) we are in the process of significantly expanding our capacity.
• In April LIBERTY Steel announced the signing of a supply contract for a low carbon emissions electric arc furnace from leading equipment manufacturer Danieli which will initially be fed by domestic steel scrap and other Fe-bearing materials, delivering an expected 90% reduction in direct CO2 emissions compared with traditional blast furnace production.

Further information  

Kelly Fedor Manager External Communications and Media +61 404 003 175 kelly.fedor@gfgalliance.com

GFG Alliance’s executive leadership team has been further bolstered by the appointment of three new leaders to its sustainable energy, capital markets, and InfraBuild divisions.

• Stefan Håkansson, a highly experienced senior executive at the European energy group E.ON has been appointed as Global Head of Sustainable Energy Projects.
• Paul Altschwager has been appointed as Chief Capital Officer, joining from international energy and convenience retailer EG Group, where he was Group CFO.
• Francisco Irazusta has been appointed CEO and Executive Director of InfraBuild, joining from the listed seamless pipe producer Tubos Reunidos, where he was Chairman and CEO.

The appointments will help to grow GFG’s core businesses, drive its sustainability CN30 ambition and structure investments in major transformation projects which include the expansion of the group’s high quality magnetite iron ore reserves, converting the group’s remaining blast furnaces to cutting edge electric arc furnaces, and investing in large scale sustainable energy and hydrogen projects.

Carbon neutral 2030 (CN30)

Stefan Håkansson has for the past five years been CEO of E.ON Business Solutions and Global Director for Energy Infrastructure Solutions, which provides end to end energy services for two million customers (Industries and Cities) in 15 countries. He was previously managing director of E.ON Thermal Sweden and Karlshamn Kraft AB, which were E.ON-owned Nordic power generation businesses.

Stefan will use his deep expertise to drive GFG’s CN30 ambition and renewable energy development, as it invests in solar, wind and green hydrogen installations to decarbonise its iron and steel operations. He will also drive energy efficiency as one of main leavers for CN30. Stefan will join after the European summer when concluding his final tasks with E.ON.

Capital Markets

Paul Altschwager has 30 years’ experience across multiple industries with complex capital, debt and operational management activities. Before being based in the UK with EG Group, Paul held senior positions at Woolworths Limited, Charter Halls Group, Westfield Group and Qantas Airways.

Paul’s experience will enable the group to build on its significant progress following agreements struck with the administrators for Greensill on a debt restructuring, the repayment A$405m of debt facility in LIBERTY Primary Metals Australia, the refinancing of the group’s US steel businesses, and the U$350m ABCF raised by InfraBuild from Blackrock and Silver Point.  Paul will take up his position on 1^st August 2023.

InfraBuild

Francisco Irazusta joins InfraBuild after a three-year term as Chairman and CEO of Spanish seamless pipe manufacturer and distributor Tubos Reunidos, where he oversaw the business’s return to profit in 2022.  Francisco previously served as Chief Executive of Light Building Products, Chief Executive of the International Businesses and Interim Chief Executive Officer at Fletcher Building, a listed building products manufacturer based in New Zealand.

Francisco’s appointment will ensure that InfraBuild continues its strong financial performance in the 2023 fiscal year, and follows InfraBuild’s recent success in the debt markets.  Interim CEO and Executive Director Dak Patel will support Francisco to ensure a smooth transition and will continue his role as a member of the InfraBuild board.  Francisco will take up his role full time on the 1^st of October.

Sanjeev Gupta, Executive Chairman, said:

“We are delighted to have attracted such world-class talent to our leadership team at a critical time for the group as we work to complete our debt restructuring and fix our sights on leading the transition to green iron and steel. The huge experience Stefan, Paul and Francisco all bring will help ensure our star businesses continue to perform and we provide a powerful platform to drive investments to capitalise on our advantages in magnetite iron ore and sustainable energy solutions which are so key to green steel production and the future of our group.”

Stefan Håkansson said:

“I am super excited about the global impact we are going to have when helping to decarbonise the iron and steel Industry. Leading this journey with very competent teams is a unique opportunity.” 

Paul Altschwager said:

“I’m delighted to be joining GFG at such an important and critical juncture in its journey to establish world class green iron and steel operations. My focus will be to support and develop the group’s capability and capacity to finance its global operations in a sustainable manner, and build on the recent key developments.”

Francisco Irazusta said:

“It is an honour for me to have the opportunity to lead this great company. I’m looking forward to meeting and working with the fantastic talent in the InfraBuild team and continuing its success.”

Further information from:

Matt Johnston – Head of Communications and Brand – Australia	(AUS) +61 438 294 377	Matt.Johnston@gfgalliance.com
Andrew Mitchell – Head of Communications – UK	(UK) +44 7516 029522	Andrew.Mitchell@gfgalliance.com
David Ollier – Global Head of Communications	(UK) +44 7850018553 (UAE) +971 501407382	David.Ollier@gfgalliance.com

Note to the editors:

GFG Alliance is a collection of global businesses and investments owned by Sanjeev Gupta and his family. The Alliance is structured into three core industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group, independent of each other yet united through shared values and a purpose to create a sustainable future for industry and society. GFG Alliance employs 35,000 people, across 10 countries and has revenues of USD $20bn. GFG Alliance is a leader in sustainable industry with a mission to become Carbon Neutral by 2030 (CN30).  

www.gfgalliance.com

Leading the GREENIRON and GREENSTEEL charge 

• The supply of a modern 160t Electric Arc Furnace from global equipment supplier Danieli that secures the future of Whyalla
• A 90% reduction in direct CO2 emissions from steelmaking expected by 2025 aligned with the aims of the Federal Government’s Safeguard Mechanism
• Global equipment suppliers engaged for a 1.8mtpa Direct Reduction Plant (DRP) to process locally mined magnetite using natural gas before transitioning to green hydrogen
• The full transformation plan will create additional permanent direct jobs, and redeployment, training, and development opportunities for employees through LIBERTY’s GREENSTEEL Academy

Electric Arc Furnace Investment

LIBERTY Steel (LIBERTY), part of the GFG Alliance, has today announced the phase out of coal-based steelmaking at its Whyalla plant with the signing of a supply contract for a 160-tonne low carbon emissions (low carbon) electric arc furnace from leading equipment manufacturer Danieli. The new furnace will lift steelmaking capacity at Whyalla from 1 million tonnes per annum (mtpa) to over 1.5mtpa.

The supply contract enables Danieli to commission the construction of the cutting-edge electric arc furnace, which will initially be fed by domestic steel scrap and other Fe-bearing materials to deliver an expected 90% reduction in direct CO2 emissions compared with traditional blast furnace production. Danieli’s patented Q-One technology, the first of its kind, provides capability for a direct feed from renewable power sources which could help to eliminate indirect emissions from Whyalla’s new steelmaking facility.

The installation of the electric arc furnace and associated infrastructure is an investment project that will be funded by the business with an application to be made to the Whyalla Steel Taskforce for a $50 million grant that was committed and funded by the South Australian government in 2016 to be used towards this investment, pending approvals. Engineering work is already advanced and construction is expected to be completed in 2025 replacing the existing Coke Ovens and Blast Furnace.

Direct Reduction Iron Plant

LIBERTY has also engaged global equipment suppliers for the installation of a 1.8mtpa Direct Reduction Plant (DRP) in Whyalla, that can process local magnetite ore to produce low carbon iron (DRI). The DRP will initially use a mix of natural gas and green hydrogen as the reducing agent, before fully transitioning to green hydrogen as it becomes available at scale. The low carbon DRI can then be fed into the electric arc furnace in combination with scrap to produce high quality steel grades for Australian infrastructure projects, and to serve the growing global demand for low carbon DRI. The development follows the successful trials for upgrading Whyalla’s magnetite pellets production to direct reduction grade.

Whyalla CN30 (Carbon Neutral by 2030)

These developments are important building blocks in Whyalla’s CN30 plan which lies at the heart of LIBERTY’s global decarbonisation strategy to be carbon neutral by 2030. Low carbon and green DRI made in Whyalla will feed LIBERTY’s network of electric arc furnaces in Australia, Asia, Europe, and the UK helping to decarbonise steel supply chains across the world.

Whyalla’s CN30 plan aims to grow magnetite production to 15mtpa to convert into 10mtpa of green DRI for export and domestic green steel* production. Operations will be overhauled with sophisticated mineral processing techniques at the mines, with state-of -the-art iron and steel making facilities, large scale hydrogen production and storage facilities all connected to renewable electricity generation.

The full transformation under Whyalla CN30 is expected to grow the total permanent workforce numbers over the next 7 years as well as adding significant job opportunities during the construction phase. The scale up and transition to electric arc furnace and direct reduction processes will also create opportunities to redeploy, train and develop existing employees in low carbon production technologies through LIBERTY’s GREENSTEEL Academy.

Executive Chairman, Sanjeev Gupta, said:
“Today marks the beginning of a new era placing Whyalla at the heart of a global revolution in the steel industry, moving it from being the most polluting of all industries to among the cleanest and greenest.

“Through the steps we’re taking to install state of the art low carbon iron and steelmaking technologies here in Whyalla we will not only support Australia’s climate ambitions, but we will help to decarbonise steel supply chains globally.

“Whyalla has some of the best conditions to make low carbon iron and steel anywhere in the world and with our magnetite expansion plans, coupled with South Australia’s endless resource for renewable energy and green hydrogen, the potential for Whyalla has no bounds.

“Whyalla is very proud of the role blast furnace production has played in the history and development of this incredible town and in supporting Australian infrastructure development, but its phasing out allows us to usher in a new era for sustainable iron and steel production that will take employment and prosperity here to new heights.”

The Premier of South Australia, Peter Malinauskas, said:

“We’re very excited to see progress on the plan to decarbonise the Whyalla steelworks.

“Whyalla and the broader Upper Spencer Gulf has enormous potential to lead the world in green hydrogen production, helping decarbonise industry across the planet.

“That’s why my Government has selected Whyalla to be the home of our Hydrogen Jobs Plan, which will see the world’s biggest electrolyser and hydrogen power station.

“We look forward to working with key industrial players, including Liberty, to take full advantage of the opportunity to reindustrialise the Upper Spencer Gulf on the back of this.”

END

Notes

• ‘Low carbon emissions’ and ‘low carbon’ is used to describe the production of steel, or a steel product, made through electric arc furnaces, or the production of iron through a Direct Reduction Iron Plant using natural gas and green hydrogen.
• ‘Green iron’ and ‘Green DRI’ is used to describe iron produced through a Direct Reduction Iron Plant using green hydrogen.
• ‘Green steel’ is used to describe steel produced from green DRI, scrap and renewable energy.

More information on the Magnetite Expansion Project, is available here.

Media Contacts

Matt Johnston – Head of Communications and Brand Australia – 0438 294 377 or matt.johnston@gfgalliance.com

David Ollier – Global Head of Communications – (UK) +44 7850018553
(UAE) +971 501407382 or David.Ollier@gfgalliance.com