Early works are underway on a transformative mining project that will help secure the future of steelmaking in Whyalla. Stage One of the Magnetite Expansion Project (MEP1) in the Middleback Ranges is set to secure the supply of magnetite required by the Whyalla Steelworks, with geotechnical drilling for planned construction activities already underway at Iron Duke, around 56km from Whyalla.
The project's potential is underpinned by a world-class magnetite resource - critical for future ambitions to transition to green iron and steel. Once delivered, the project will facilitate magnetite production of up to 2.5 million tonnes per year, providing long-term certainty for the Whyalla Steelworks.
Realising the expansion project would underpin an additional 20 years or more of additional mine life and continuity for more than 300 jobs.
The project is supported by a $20 million loan jointly funded by the Australian and South Australian Governments. This loan forms part of the $275 million funding package announced last July, with costs shared equally between both governments.
It comes as the sale of the Steelworks enters the final stage of binding bids, with five domestic and international industrial groups shortlisted after interest from more than 70 parties worldwide.
More than 10 site visits have taken place from international delegations, including from Japan, Korea, India, Vietnam and Europe.
The five shortlisted proponents are now undertaking detailed technical, financial and operational due diligence ahead of the submission of binding bids expected within months.
All this follows the State Government's decision to place the steelworks' owner GFG Alliance into administration exactly one year ago this week.
The Albanese and Malinauskas Governments together funded a historic $2.4 billion support package, including financial assistance for local suppliers.
This decisive action has secured the future of the Steelworks, restored confidence in Whyalla and opened the door to genuine international competition for a new owner that will see steelmaking capability retained in South Australia.
Since this intervention, the Steelworks operation has achieved its best open pour billet casting performance since the asset was commissioned in 1999.
In November, the Finished Goods team dispatched close to 8500 tonnes of product in just three days, the highest result in a decade, while Steelmaking achieved the highest 24-hour production result for a specific casting type since the caster was constructed.
The recovery continues with 27 new local apprentices commencing work with OneSteel Manufacturing this month.
This follows the successful completion of 23 apprenticeships at the end of 2025 through OneSteel Manufacturing's Workforce Development Program. Just five apprentices were employed at OneSteel the previous year.
In total, more than 70 apprentices are currently employed across OneSteel Manufacturing's operations in Whyalla, reinforcing the scale of long-term workforce investment in the region.
Trade apprentices in Whyalla will also now be able to complete more of their training locally thanks to a significant investment from the Malinauskas Labor Government in new training equipment and the expansion of key training courses in the region.
A $967,000 upgrade to equipment at TAFE SA Whyalla, including new CNC (computer numerical control) machining, hydraulics and pneumatics training infrastructure, has been jointly funded by the Malinauskas Government and OneSteel Manufacturing.
The Ferretti Building has been repurposed as the new training centre, bringing an existing industrial facility back into productive use and ensuring apprentices train on full scale, industry grade equipment that closely reflects the tools used in real steelmaking and advanced manufacturing environments.
Quotes attributable to Minister for Industry and Innovation and Minister for Science Tim Ayres:
"This $20 million jointly-funded loan is driving early works on a transformative mining project that will secure the future of steelmaking in Whyalla and provide long-term certainty for the region.
"With a world-class magnetite resource and an estimated 21 year mine life, this project underpins more than 300 jobs and supports the move to low-emissions iron and steelmaking in South Australia.
"Together, decisive government action has restored confidence in Whyalla, attracted strong international and domestic buyers for the steelworks and has laid the foundations for long-term workforce growth and skills development."
Quotes attributable to Premier Peter Malinauskas:
"The Magnetite Expansion Project will not just be a major boon for the Upper Spencer Gulf and the South Australian economy, it is the key to the long-term viability of the steelworks.
"MEP1 is focussed on securing a reliable, long-term supply of magnetite to underpin future steel-making in Whyalla.
"This initial $20 million loan, jointly funded by the Commonwealth and South Australian Governments from the $275 million funding package announced last July, have allowed administrators KordaMentha to invest in the critical long-lead equipment required to support the mine expansion.
"MEP1 will provide an additional two decades of mine life and underpin hundreds of new jobs.
"We're already seeing some of those come online, with 27 new apprentices starting work across the steelworks and mine.
"Our commitment to creating skilled jobs is underpinned by an almost $1 million investment in TAFE SA Whyalla, jointly funded with OneSteel's administrators.
"It's been one year since we took the bold decision to put the steelworks and mine operations into administration, and joined the Albanese Government in funding the biggest transition and support package of its kind in our nation's history.
"Today, as a result, the future of Australian steelmaking capacity is on firm footing, with five major players shortlisted to purchase the operations and the magnetite expansion project set to breathe new economic life into the region, and the state."
Quotes attributable to SA Energy and Mining Minister Tom Koutsantonis:
"The heartbeat is returning to the heart of Whyalla.
"The creation of new jobs at the steelworks is a genuine sign of this vital operation finding a new lease of life.
"Make no mistake, there is a long road ahead, but it is a road that Whyalla now travels with greater confidence.
"The Steelworks has already transitioned from hematite to magnetite iron ore feed as the Middleback Ranges ore body shifted from hematite to magnetite - a transition that unlocked a new export mining business and delivered almost two decades of jobs, port activity and economic benefit.
"Magnetite is a critical input for lower-emissions steel and green iron and South Australia holds some of the world's largest magnetite resources.
"MEP1 stands to mark the next chapter in the region's industrial evolution.
"Progressing this project demonstrates continuity of supply, long-term mine life and a clear pathway to industrial transformation - and further strengthens the value proposition as we enter a decisive period in the sale process."
Quotes attributed to Member for Giles Eddie Hughes:
"The Middleback Ranges was the birthplace of the Australian iron and steel industry.
"For generations, mining secured jobs and value-adding in Whyalla.
"We are now entering a new era of mining with early works to progress the first stage of the Magnetite Expansion Project.
"A year ago the Malinauskas and Albanese Labor Governments took unprecedented action to secure the future of our community and sovereign steelmaking capacity through the $2.4 billion Sovereign Steel Package.
"That unprecedented intervention will bear fruit over the coming years and stage one of the Magnetite Expansion Project will represent a tangible first big step."
