GFG Alliance, the owner of Whyalla Steelworks, has announced plans to sell an interstate coal mine to help pay off its multi-million dollar debts. The company says the sale will free up funds for reinvestment in the Whyalla plant’s recovery and growth. The premier has welcomed the decision but remains cautious about the steelworks' future.
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00:00Selling up one operation to pay the bills on another.
00:06A stake in this coal mine near Tarmore in New South Wales, to be sold by Wyala Steelworks
00:11owner GFG Alliance, with some of the proceeds available for reinvestment in Wyala to catch
00:17up with supplier payments.
00:19These things take time and we're worried about time.
00:23The sale won't happen quickly, it needs approval from the company's board.
00:28Despite the promises of new funds, both sides of politics remain worried about GFG's debts
00:33in Wyala, including tens of millions in royalties, a similar amount to private contractors, and
00:39the ABC understands $17.5 million to SA Water.
00:43This problem would go away quickly if GFG simply paid all of their debts as and when
00:50they feel due.
00:51They need to be paid and they need to be paid now.
00:54GFG Alliance has also reached an agreement to settle its debts with UK-based finance
00:58firm Greensill Capital.
01:00Chairman Sanjeev Gupta says it means the company can now pump new money into its Wyala operation.
01:06Amid the challenges, there's been ongoing questions around the future of the state government's
01:10proposed hydrogen project in Wyala.
01:13The government says its promise to build a $600 million hydrogen plant hinges on GFG
01:18as a customer and its operations in Wyala are transitioning to green steel.
01:24In a change in tone over the project, Premier Peter Malinowski says his government is yet
01:29to make a final investment decision on certain parts needed for the hydrogen project to go ahead.
01:34If it's not expended on the hydrogen jobs plan, it will be expended exclusively within
01:41the Wyala community.
01:43An ongoing commitment for a struggling city which has been promised a lot.
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