Latest news with #Whyalla
News.com.au
3 hours ago
- Business
- News.com.au
South Australia shaken by jobs challenges and Premier Peter Malinauskas must be at top of his game
South Australia's foundations are being shaken by global and natural forces, with tempestuous times ahead. In a tumultuous past fortnight, bedrocks of the state economy, employing thousands of people, have been plunged into doubt. Santos, the state's biggest company by far, is the target of an almost $30bn takeover bid by an Abu Dhabi raider, casting great uncertainty over the future of its Adelaide head office. The $368bn nuclear-powered submarine project centred on Adelaide is under threat from a 30-day United States review assessing its alignment with President Donald Trump's America First agenda. Despite some heartening rain, the drought continues to ravage the state's farms – SA primary industries generate $17.1bn annually. State debt was forecast to soar to $48.495bn in the state budget unveiled on June 5, after which the influential S & P Global Ratings warned big new spending ahead of next March's state election could trigger a credit rating downgrade. The purse strings will continue to be tested by the Whyalla steelworks and mine, as the budget set aside $384m in state and federal funds for a potential six-month extension of the state-induced administration. The Malinauskas government might have repeatedly ruled out an ownership stake in Whyalla's steelworks but a $2.4bn state/federal rescue package leaves both on the hook until a new owner is found. Public sector unions are restless. The SA Salaried Medical Officers Association on Thursday rejected a 10 per cent pay rise over three years and recommitted to walking off the job on Wednesday. These are extraordinary and foundational challenges, of varying degrees of concern, to the state economy and, most particularly, the potential for today's aspirational young South Australians to find well-paid, challenging jobs. The risk of Santos's head office leaving Adelaide should not be dismissed lightly. A foreign takeover, as my colleague Giuseppe Tauriello observed on Wednesday, would significantly diminish the last corporate heavyweight left standing in South Australia. Santos dwarfs other SA companies for jobs, investment, sponsorship and general corporate clout. It is four times the size of the state's second biggest firm, Argo Investments, and more than eight times the size of third-ranking Codan. Business success matters in a state where the population is overwhelmingly concentrated in the capital, and most jobs are underpinned by state and federal government spending of some form. Santos and partner Beach Energy in January officially opened a nation-leading Moomba carbon storage project, billed as kickstarting a $600bn industry and hailed by Premier Peter Malinauskas as a 'historic day for our state'. Mr Malinauskas responded to the Santos takeover bid by declaring his government's 'priority at all times is to ensure that South Australian jobs remain in South Australia, and to maintain Santos' headquarters in Adelaide'. This will be a test of his government's mettle and resolve, along with its legislative levers that include ministerial approval for a change in controlling interest of a petroleum resources licence holder, like Santos. Opposition Leader Vincent Tarzia, in his Tuesday budget reply speech, predictably painted a bleak picture of a state ravaged by debt, skyrocketing costs, unaffordable homes and a floundering health care system. Nine months out from the next state election, he vowed to deliver a 'debt management plan' to ensure this was at 'a sustainable level'. Mr Tarzia declared the state was 'at a crossroads'. He was right, although the future is always uncertain. Mr Malinauskas has a strong story to tell on economic confidence, a historically low jobless rate and the state's standing in the nation. But he will be justifiably wary of overconfidence ahead of the state election, even if his opponents are at a historically low ebb in their standing. The state is facing some serious challenges and the Premier will need to be at the top of his game.
ABC News
21 hours ago
- Business
- ABC News
Administrators reveal staggering debts of Whyalla Ports with at least $194 million owed
The administrators of Whyalla Ports Pty Ltd have told creditors the company owes at least $194 million, but the true amount is still unclear. Accounting firm William Buck held the first creditors' meeting for the company on Thursday, revealing $25 million was owed to trade creditors with a further $63 million listed as a lease liability. The largest slice is owed to Golding's and its parent company NRW, a key mining contractor, with a secured debt of $106 million. However, administrator Michael Brereton said they were waiting to receive financial records from Whyalla Ports directors. "One of the first things we did on our appointment was to issue a notice to the directors to complete what's called the report on company affairs and property," Mr Brereton said. "That was issued immediately … [and] we have yet to receive those from the directors, so we don't have all the financial information. "[I] think one of the problems they face is that the company operated on the basis that it held the port. "Based on the litigation and the legislation that's been passed, it's become apparent that maybe the company didn't have control of the ports. "So I suspect they're having some problems trying to work through 'What are the financial records of the company?'" In early June, the ports became another casualty in the ongoing fallout since the Whyalla Steelworks was tipped into administration by the state government. The company, Whyalla Ports Pty Ltd, was involved in a Federal Court case launched by Whyalla Steelworks administrators KordaMentha, which wants control of the port so it can sell the steelworks as an integrated asset. Parent company GFG Alliance said when the state government passed new laws to "clarify" that the port was owned by OneSteel, it was left with "no option" but to push the port into administration. KordaMentha has since abandoned the legal action it began. However, a counterclaim from GFG Alliance is still being pursued over the ownership of some assets. During today's meeting, Mr Brereton said a lease agreement between OneSteel and Whyalla Ports was terminated on March 27. "The company was not trading on our appointment," Mr Brereton said. "The company was dispossessed of all its plants and equipment at that time and its right to provide services to customers." One Whyalla creditor, who wished to remain anonymous, previously told the ABC they were owed between $100,000 and $200,000 by Whyalla Ports. They said they feared they may never receive the money due to the dispute over the port's ownership. CEO of Sudel Industries and creditor Kevin Moore said he was owed roughly $20,000 from Whyalla Ports. "Basically, I've already written that money off. I don't think we'll see it." Although the paperwork has not been filed, it is understood that the company will more than likely apply for a deed of company arrangement (DOCA) at its next meeting.
ABC News
10-06-2025
- Climate
- ABC News
Severe drought sees emus and other wildlife in search of water
The severe drought has seen emus and other wildlife desend on towns like Whyalla in search of food and water. Supplied: George Vlachoulis
ABC News
10-06-2025
- Climate
- ABC News
Animals move into built-up areas as drought continues in South Australia
Native animals are migrating onto properties and into towns in search of food and water due to severe drought conditions in South Australia. The change in animal behaviour comes after areas in the state's south received record-low rainfall in the past 12 months. Northern and Yorke Landscape Board general manager Tony Fox said animals such as kangaroos moving onto properties had exacerbated the problems facing farmers. "We've got a really compounding problem here," Mr Fox said. "Not only are the kangaroos struggling now to find feed, but they're actually removing ground cover in many parts of the landscape. "We're now more prone to dust, erosion, and removal of topsoil. "It's a really difficult situation … for a farmer who's trying to manage his property sustainably and then having a lot of his hard work undone." Whyalla has seen an influx of emus and kangaroos. While the unusual sight can be interesting for people living in more built-up areas, experts have warned against feeding or leaving water out for animals. Cassandra Williams from Whyalla Wildlife Rescue said it was likely the visiting emus were young and had recently struck out on their own. "Essentially, they become used to being around humans, which then puts them at risk, which then causes more complications due to traffic, destroying private properties, and can be a hindrance with other animals." Ms Williams also warned that tap water was not suitable for wildlife. "Their bodies can't deal with the chemicals that are in our tap water," she said. "They can actually become ill." Ms Williams said in extreme cases, the animals had to be euthanased because they became too sick. Mr Fox said that while he could understand the sentiment of helping an animal in distress, intervening could have unintended consequences. "This is a natural sort of cycle that they're going through," he said. Mr Fox said farmers were not unsympathetic and would have seen these animals in distress. He said staff had increased reports of kangaroos being left "weak" and "struggling to move" due to malnutrition and dehydration. "Many farmers would be seeing the welfare issues coming through with these malnourished animals that haven't got access to good water," he said. "You quite often see them by the sides of the roads now because roads often have just the occasional bit of moisture that dribbles off that will create a bit of green. "That's the other reason we're seeing so many dead kangaroos being hit by cars on roadsides." National Parks and Wildlife Service district ranger Peter Wilkins said the department was aware of the increased reports of animals moving into townships. Both Ms Williams and Mr Wilkins said animals that migrated towards towns were not forcibly relocated if they were healthy. "Relocating them is not an advisable thing," Ms Williams said. "It causes a great deal of stress to the animal if we have to basically corner it to catch it and then remove it." Ms Williams said the animals would eventually move on if they were left alone.
ABC News
08-06-2025
- Business
- ABC News
GFG puts Whyalla port company into administration after government intervention
GFG Alliance has placed its subsidiary company which formerly operated the Whyalla port into administration, after the state government intervened in an ownership dispute over the facility. The company, Whyalla Ports Pty Ltd, was embroiled in a Federal Court case launched by Whyalla steelworks administrators KordaMentha, which wants control of the port so it can sell the steelworks as an integrated asset. The state government recently intervened by introducing law changes to "clarify" that the port is owned by OneSteel Manufacturing — the GFG subsidiary that operated the steelworks before being tipped into administration — rather than Whyalla Ports Pty Ltd. In a statement released on Saturday, a GFG Alliance spokesperson said the law change left it with "no option but to place Whyalla Ports Pty Ltd into voluntary administration". The spokesperson added that the company was "confident" the Federal Court case would have been decided in its favour "had the Australian legal system been allowed to determine the matter in the usual way". "Whyalla Ports revenue has been severely impacted by the actions of the South Australian Government," the spokesperson said. "Whyalla Ports Pty Ltd is unable to engage in any commercial activity after the termination of its lease and the seizure of assets by the South Australian Government at the request of the Administrators. "These actions have resulted in a complete stop in all revenue streams and therefore no ability to pay creditors." KordaMentha has continued to operate the port throughout the ownership dispute, while the state government said GFG's decision has no impact on the facility's operation. "The port continues to operate as usual," a state government spokesperson said. "The voluntary administration of any GFG operation is a matter for GFG." GFG claims that the administrators of the steelworks have "continued to use Whyalla Ports Pty infrastructure on land leased by Whyalla Ports without effecting payment for use of the land or infrastructure worth millions of dollars". But the state government claims that ministerial consent was required to lease the port and "this consent was neither sought nor granted". "The Government had complete confidence in the legal action undertaken by KordaMentha, however the legislative changes clarify the consequence of failure to gain consent and will ensure similar action will not be necessary in future," the government spokesperson said. KordaMentha sought to withdraw its legal claim against Whyalla Ports at a Federal Court hearing on Tuesday, saying the government's law changes had achieved what they were seeking. But the court also heard a cross-claim by the defendant, Whyalla Ports, would continue, with their lawyers telling the court there is still a dispute over the ownership of some assets. The matter is expected to go to trial in August. GFG said on Saturday that its decision to appoint administrators for Whyalla Ports will have "no operational impact on the rest of GFG Alliance".
