Prime Minister Anthony Albanese announced on Thursday that a struggling Australian metals plant will be repurposed into a production hub for “green iron and steel” as part of a government-backed billion-dollar rescue package. The initiative aims to revitalize the facility while advancing Australia’s push toward sustainable industrial practices. The company has been known to be hit by debts, and more than 1,000 workers have been losing their jobs.
On Thursday, Albanese committed to a significant redevelopment plan to rescue the site, which was run by British billionaire Sanjeev Gupta’s GFG Alliance. Setting aside more than Aus$2 billion (US$1.27 billion) to pay off debts and upgrade their infrastructure, to use it for continued operations but with less polluting methods.
“Investment in green iron and steel will secure future demand for Australia’s iron ore as the world moves toward lower emissions iron and steel,” Albanese said. “Green metals are pivotal for global decarbonisation, with iron and steel production responsible for eight percent of global emission,” he added.
Albanese also added that Whyalla would receive up to Aus$ 500 million (US$317 million) from a newly created sovereign Green Iron Fund, as per reports on economic times.
Metals such as steel and aluminium are typically produced in hulking factories that rely on polluting coal-fired power. The new push is focused on powering these factories with renewable energy to lower the emissions of carbon in the process.
According to government data, Whyalla is one of only two steelworks in Australia and accounts for 75 percent of the country’s structural steel production. Australian Workers’ Union secretary Paul Farrow shared his views that Whyalla Steelworks’ operations were crucial to the country’s economic sovereignty.
“Whyalla supplies three-quarters of Australia’s domestic steel supply. Without it, we would be beholden to foreign nations for the building blocks of our society,” he said.