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Huge jobs blow as $1 billion Arafura Resources Whyalla mineral processing plant scrapped

PLANS to build a $1 billion mineral processing plant at Whyalla and create 1000 jobs have been scrapped due to a challenging business environment.

Besides the jobs and investment, the decision also means losses worth $100 million per year in economic spin-offs for Whyalla.

Arafura Resources, the company looking at mining rare earths in Northern Territory, initially planned to process the rare earths at a dedicated complex to be constructed in Whyalla.

The company today informed shareholders of its intentions to ensure "significant savings" of up to $1 billion by relocating its intermediate chemical processing plant closer to the Nolans Bore Mine site in Northern Territory.

Arafura blamed "increasing business costs, lower rare earths prices and continuing depressed capital markets" for its decision.

The Whyalla plant was expected to supply about 10 per cent of the world's demand for the elements, producing 20,000 tonnes a year. The 1000 jobs were expected to be created in the first two years following which there would be 300 permanent positions at the site.

The site had been progressed significantly in terms of planning and environmental studies.

The project, first announced in 2010, was awarded major project status by the South Australian Government.

Whyalla Mayor Jim Pollock said it was time the State Government got more involved in the needs of regional South Australia.

"We desperately need some support towards infrastructure for ports, power and rail, not to mention social infrastructure," he said.

"Arafura's announcement is disappointing. I know our community is resilient, but it is going to be hard to build confidence after major projects get either deferred or scrapped.

"But Whyalla is still around and the major employers like OneSteel, Arrium and Santos are still around. It's not back to the drawing board yet."

The council would continue to lobby state and federal governments to push forward on other projects proposed for the region, including the $200 million Solar Oasis renewable energy project.

Mr Pollock cited examples of the $8 million Muradel algal biofuel demonstration project, the $80 million hospital upgrade and the $50 million Defence upgrade at Cultana as projects that would keep jobs in the region and the economy going until another major project could be attracted to Whyalla.

Prominent Adelaide businessman and chairman of Arafura Resources Ian Kowalick issued a statement to shareholders this morning.

"The upward pressure on costs and the recent softening in rare earth prices has created an environment which, at present, compromises the viability of the Nolans Project in its current configuration."

"Relocating the intermediate chemical processing element of the project close to the mine site will create substantial and materially significant savings for the project and mitigate risks related to transport and logistics."

Arafura aims to mine rare earth oxides, phosphate, gypsum and uranium at the mine.

Rare earths are used in many high-technology applications such as green energy technologies, iPods and flat-screen televisions.

Arafura will continue to retain interest in the 800ha of land at Whyalla pending a final decision on the extent of plant relocation.

It's another blow for Whyalla after Deepak Fertiliser decided to withdraw plans for an ammonia nitrate processing complex and BHP Billiton decided to postpone its Olympic Dam expansion.

Opposition leader Steven Marshall said the state was falling behind economically while the government continued to "overspruik'' what taxpayers are going to get from such projects.

"We have the highest business taxes, highest electrical prices, highest water prices in any capital city and highest workcover rates - double the national average."

Minister Snelling said there was a pipeline of $25 billion worth of projects, mostly iron ore developments, for the Upper Spencer Gulf and the government did not regret being bullish about projects that did not eventuate.

"I make no apologies for being optimistic about the South Australian economy,'' he said.

South Australian steelmaking business Arrium is to be sold to a British company and not the Korean consortium identified as the preferred bidder, the state's Premier Jay Weatherill has confirmed.

A new South Australian iron ore mine has been approved to feed Whyalla's steelworks at cheaper cost, and another to boost iron ore exports from the region.

The new mining leases have been approved in the Middleback Range on Eyre Peninsula and add to Whyalla businessman Sanjeev Gupta's assets portfolio.

His company SIMEC Mining has gained approval for the Iron Sultan mine — which will feed the Whyalla steelworks — and the Iron Warrior mine, which will produce up to 1.5 million tonnes of export iron ore annually.

The ventures are expected to support a workforce of 56 as well as another 130 contractors.

They are the first approvals for the Whyalla region since SIMEC acquired Middleback Range mining leases as part of Gupta GFG Alliance's purchase of debt-laden steelmaker Arrium.

SA Mineral Resources Minister Tom Koutsantonis said the Iron Sultan mine would develop a hybrid pellet feed plant to significantly reduce the price of making steel at the Whyalla blast furnace.


"Iron Sultan will play a significant role in reducing the costs of steelmaking at Whyalla steelworks, while Iron Warrior continues South Australia's role as a reliable iron ore exporter," he said.

"Approval of these two mines demonstrates the commitment of the new owner to develop its South Australian iron ore assets and create a more sustainable steelmaking business."

Whyalla’s new jetty is totally loopy — its circular design will be unique in South Australia
Erin Jones, Regional Reporter, The Advertiser
March 28, 2018 4:54pm



WHYALLA’S new multimillion-dollar jetty – which features a 145m circular boardwalk – will create a haven for fishers and tourists in a first for South Australia.

Whyalla City Council this week approved a final design for the 145m-long jetty – expected to cost about $3.4 million – and was “pushing” for it to be opened by Christmas.

The council’s chief executive, Chris Cowley, said the jetty’s circular section was created by SA-based engineers Magryn and Associates, and was inspired by Denmark’s Infinite Bridge.

“Not only is this jetty going to be much longer than the old one, it now has an innovative extra circle that is going to put Whyalla on the map,” Mr Cowley said.

“This circle is something unique to South Australia and not seen in many other places in the world either.

“It allows the jetty to cater for recreational fishers and also tourists and locals who just want an enjoyable walk out on the jetty and over the water.”

The council last year received a $1 million grant towards the jetty from the former State Government, and would fund the shortfall.

Mr Cowley said the jetty would be made with locally-sourced steel pylons and concrete planks, and it was likely to become a “one of the jewels of our city”. “It is going to be something everyone in Whyalla can be rightfully proud of and something that is going to be talked about throughout Australia,” he said.

The design was chosen following results of community consultation late last year.

British billionaire businessman Sanjeev Gupta is seen by many as Whyalla's saviour — now he is planning for yet another major investment in the city.

At an SA Chamber of Mines and Energy dinner in Adelaide last night, Mr Gupta said he was investigating the possibility of building a copper smelter and refinery in Whyalla.

The entrepreneur bought the city's financially troubled steelworks last year, announcing plans to increase its production.

He has also invested heavily in renewables, buying a controlling stake in South Australian-based Zen Energy and announcing plans for solar and pumped hydro plants.

Mr Gupta said it was too early to go into the finer details of his copper smelter plan, but described it as "strongly viable".

"What it needs is good infrastructure, which we have," Mr Gupta said.

"It needs cheap energy, which we will have.

"It needs a great workforce, which we have and can develop more of, and it needs the supply of copper [concentrate], which we've had some interesting discussions with vendors for that."

Mr Gupta said he would be in a position to release more details before the end of the year.

"We've hired and will join within a month-and-a-half a new CEO who will head this objective, so it's still in development but we're very serious about it," he said.

Copper was first mined in South Australia in 1842.

BHP-owned Olympic Dam is one of the world's largest copper mines, but the company has its own smelter at the mine site, about 580km north of Adelaide.
Plans for a new Australian bank

At the industry event, Mr Gupta also discussed his plans to buy or set up a bank in Australia.

It is something he has already done in the UK, where he said there was a gap for a bank servicing medium-sized businesses.
Bright orange liquid copper pours from a pipe as steam rises off it.
Photo: SA has copper mines at Olympic Dam, Prominent Hill and Kanmantoo. (Supplied: Glencore)

He said Australia was in a similar position.

"Because it's too expensive to serve that sector, there's a gap in the middle and we felt that gap very acutely in the UK and we addressed that," he said.

"In the UK, we've bought two banks in the UK and repurposed them.

"We'd prefer to do that here, because it means we can short cut the timeline and set up a bank, but if we have to set up, we'll apply for a licence and set up from scratch."

Last week, Mr Gupta spoke at an energy conference in Adelaide, where he said his company also plans to build an electric car factory in Australia.

NOVEMBER 21 2018 - 11:37AM
Huge boost in steel output at Liberty amid transformation plans
Greg Mayfield
Local News

Whyalla’s GFG Alliance steelworks’ production has jumped by almost 90,000 tonnes yearly as the company embarks on a major transformation.

The increase has been achieved by exporting steel slabs to Liberty Newport in Wales.

It represents more than 50,000 Holden Commodore sedans which would stretch 260 kilometres if lined up.

In a Transforming Whyalla update leaflet being distributed this week to residents, the company told of what is arguably the biggest and most exciting project to come to our city in half a century.

“A project of this magnitude requires a tremendous amount of work - most of which goes on behind the scenes – to prepare the business for what will be a once-in-a-generation transformation,” It said.

“Our Transformation Team comprises local and international experts, who are positioning the business and city for success long into the future.

“There will be a ‘big reveal’ regarding our project in coming weeks – be sure to keep an eye out for more details on this momentous event.”

Politicians and business leaders hail ’the most exciting time in Whyalla history’ as major infrastructure projects revealed

A sweeping plan to revitalise Whyalla — headlined by plans for a massive new steel plant to sit alongside the upgraded existing steelworks — has been revealed by British industrialist Sanjeev Gupta. Here’s how business and political leaders are reacting.



Erin Jones and Cameron England

The AdvertiserDecember 10, 201812:44pm




A sweeping plan to revitalise Whyalla — headlined by plans for a massive new steel plant to sit alongside the upgraded existing steelworks — has been revealed by British industrialist Sanjeev Gupta.


At a Monday morning announcement featuring Prime Minister Scott Morrison and Premier Steven Marshall, it was announced that:

THE current steelworks will receive a $600 million upgrade, creating a maximum capacity of 1.8 million tonnes and securing 2500 jobs.

FEASIBILITY studies will commence on a massive new steelworks, to sit alongside the existing plant, with a maximum capacity of 10 million tonnes.

A NEW $45 million four-star hotel will be built in Whyalla.

A CHINESE company will back a new $145 million horticulture business.

A $6 MILLION organics recycling business will be established in the town.


Mr Gupta said when he first came to Whyalla — which was dealing with the failure of mining and steel business Arrium, which his company GFG Alliance then purchased — it was a “diamond in the rough’’ with all of the necessary factors for a successful industry.




These factors included energy and natural resources, a “unique” port, and a workforce which was willing to fight for its future.

“This was the poor cousin, a broken steel town,” Mr Gupta said. “But those of you who know me that’s like red rag to a bull.”





The so-called “Big Reveal” attracted state and federal politicians including Prime Minister Scott Morrison, Federal Opposition Leader Bill Shorten, Premier Steven Marshall, and State Opposition Leader Peter Malinauskas.

Other guests included Mengxing Zhang, the president of China Metallurgical Group Corporation (MCC) which is a Beijing-based company which has various business interests and owns China Minmetals, which in turn owns a number of mines in Australia.

Mr Morrison said Whyalla was “a city with a great future”.

He said Mr Gupta had “defied the critics and backed himself with his cash and his credibility’’.

“This is the turnaround state and this is the comeback city in Australia when we’re talking about Whyalla,” Mr Morrison said.




Mr Shorten paid tribute to the resilience of Whyalla’s steelworkers.

“Sometimes it takes someone from outside to remind us how lucky we are and what we need to do to invest ourselves in the future,” Mr Shorten said.

Mr Marshall said there was “great and growing confidence that our best days in manufacturing are ahead of us’’.

The Premier paid tribute to Mr Gupta for his ambition and drive in transforming Whyalla and his industrial ambitions globally.

“Whyalla will once against be a powerhouse of industrial activity,” Mr Marshall said.






The State Government has already previously committed to building a new $100 million high school for Whyalla, which Mr Marshall said would be open in 2022.

Whyalla Mayor Clare McLaughlin said it was “probably the most exciting and important time in Whyalla’s history’’.

“Whyalla will be transformed,’’ she said.

Originally published as ‘The most exciting time in Whyalla history’

Industrialist reveals grand, global expansion plans for Whyalla

British industrialist Sanjeev Gupta has unveiled an ambitious plan for a “grand scale steel plant” in Whyalla, capable of annual exports of 10 million tonnes.



Executive Chairman of GFG Alliance Sanjeev Gupta says the Whyalla steelworks is a "diamond". Photo: AAP/David Mariuz
The billionaire today revealed details of what he said could become one of the world’s largest steel production facilities.

Chinese company China Metallurgical Group Corporation has signed on to build the new facility for Gupta’s company GFG Alliance if it gets final approval.

Gupta also outlined a $600 million expansion of Whyalla’s existing steel mill to lift production to 1.8 million tonnes each year.

On a day of what local authorities described as “transformational announcements”, the city council said other new projects would include a $45 million foreshore hotel, a $145 million horticulture facility and a $6 million organic recycling business.

It’s been suggested the expansion of steel production and the other developments will boost Whyalla’s population from about 20,000 to about 80,000.

Gupta was joined in Whyalla today by Prime Minister Scott Morrison, Opposition Leader Bill Shorten and Premier Steven Marshall as he spoke of his vision to grow and secure thousands of jobs.

He said when he first came to the city with a view to taking over the troubled steelworks his briefing notes suggested a rescue was not possible.

“This was the poor cousin, a broken steel town,” he said.

“But those of you who know me that’s like red rag to a bull.”

Full article : https://indaily.com.au/news/2018/12/10/ ... r-whyalla/