SA looks to leverage Arrium cash

The South Australian government will look to get as much as it can from its $50 million in funds to help secure the future of Arrium's Whyalla steelworks.

The South Australian government will look to leverage opportunities from its $50 million commitment to help ensure the future of the Whyalla steelworks, Premier Jay Weatherill says.

The premier was in Whyalla on Monday to mark the decision to sell steel producer Arrium to GFG Alliance, the group headed up by British billionaire Sanjeev Gupta,

Mr Gupta is expected to travel to Adelaide this week for talks with the government and Mr Weatherill says the details surrounding the state government's support are expected to be advanced.

They will include renewable energy projects and greater access to Arrium's port facility with the government looking for the funds to go to "productive future infrastructure".

"We are keen to secure the commitment that we made, a condition if you like, of our grant, which is opening the port to third-party access," the premier told reporters.

"This is a fantastic asset, it is underutilised.

"If more people could use it consistent with the operations of the steel works, it could unlock value here for Whyalla."

Mr Weatherill has also praised local workers at Arrium in Whyalla who he said remained highly motivated and deeply committed to the future of the steelworks.

"There is a difference about a town, a place like Whyalla," he said.

"It is not a fly in, fly out mining or industrial concern. These are people that, in many respects, have built their lives here.

"They weren't just protecting their own jobs, they were protecting this community.

"They had some skin in the game."

GFG Alliance has signed a binding agreement to Arrium, with the deal given federal government approval last week.

Details are still being finalised with the sale price or other arrangements not yet revealed.

The company has committed to maintaining the 1500 jobs in Whyalla with a hope of further expanding the plant as it seeks out new markets.


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Source: AAP


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