Arrium's troubled Whyalla steelworks is set to break even but administrators say it still needs federal funding to survive.
KordaMentha administrators have identified $300 million in savings company-wide and say the group's mining business will profit slightly in the 2016-17 financial year.
Mark Mentha says while Arrium's position has improved significantly, it still needs extra money to ensure long-term viability.
But Industry Minister Christopher Pyne has baulked at the idea of bailing out a company that's making money after Labor pledged $100 million for targeted grants and financing.
"The idea that somehow Arrium is about to close and the Whyalla steelworks is about to close and there'll be 3000 people out of work is not a reality," he said on Thursday.
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Prime Minister Malcolm Turnbull called the opposition's promise "unbusiness-like".
He also said he had personally been through Arrium's finances with the administrator and discussed it with South Australian Premier Jay Weatherill.
The steel and mining group went into voluntary administration in April after failed talks with lenders, and its restructure and sale is set to be complete by the end of the year.
Mr Mentha said Labor's funding offer would make the steelworks more attractive to buyers.
"Arrium is a far more efficient company today than it was yesterday," he said.
"With the plant and capex initiatives that we're looking at, this money will move the dial in making ... it a realistic long-term proposition for a buyer."
Opposition Leader Bill Shorten, who visited Whyalla on Thursday, said thousands of families would suffer enormously if the steelworks shut.
South Australia last week pledged $50 million for the plant and asked both major parties to double that figure.
