Over the past five months, extensive recovery efforts have been undertaken on the blast furnace to attempt to restore operations. Despite these efforts, it is no longer sustainable to continue recovery, and we have taken the decision to close the blast furnace in the interests of safety and the long-term future of OneSteel Manufacturing.
This decision means that the steelmaking function and parts of the pellet plant operation at Whyalla will cease, until the new steelworks is completed using modern technologies and processes. It will impact up to 500 employees and approximately a further 100 labour hire workers.
The Whyalla Port and mining will continue to operate. The Steel Products will continue to operate using a combination of stockpiled and externally sourced semi-finished steel product.
"The efforts of all at Whyalla to keep the blast furnace operating over many years, and then through the current attempted recovery process, should be commended," said joint administrator Sebastian Hams. "This is a difficult decision, but it is a necessary one as the company transitions to modern steelmaking technologies. The blast furnace and the current basic oxygen furnace were always intended to be replaced."
"This decision will regrettably have a major impact on OneSteel Manufacturing's workforce. Our immediate priority is to support affected employees and contractors, provide clarity regarding available options, and engage openly and transparently with employees, unions and other stakeholders throughout the consultation process. Safety remains our highest priority and will continue to guide every aspect of the transition."
The Whyalla Blast Furnace No.2 was commissioned in 1965 and relined in 1972, 1981 and 2004. Construction of Whyalla Blast Furnace No. 1 began in 1938, and it started producing pig iron for Australia's war effort in 1941. It was permanently decommissioned in 1981 and physically demolished in 1997.