Administrator at Whyalla Steelworks warns of funding shortfall to keep the plant running

The administrator at the Whyalla Steelworks is warning it doesn't have sufficient funding to keep the plant operating for another 12 months.

Transcript

00:00From today, the blast furnace will undergo a 36-hour shutdown to undertake some urgent

00:08repair works.

00:09That's according to the state's Minister for Energy and Mining, Tom Coutts Antonis.

00:14The newly appointed administrators of the Wyala Steelworks, Kornementha, are warning

00:19the plant is in a state of disrepair and they're extremely concerned for the health and well-being

00:25of local workers.

00:26Just a few weeks ago, the company held its first creditors' meeting where it was revealed

00:31the plant was losing $1.5 million per day.

00:36On Monday, Kornementha filed an affidavit seeking a 12-month extension for the next

00:41meeting, saying that it may take that long to be able to restructure or sell the steelworks.

00:48According to the affidavit, Kornementha says they've identified severe challenges in respect

00:53to the state of disrepair of the works.

00:56They also say that since taking control, they've also found that it's gone through

00:59a period of underinvestment, no maintenance and poor health and safety practices.

01:05Kornementha is saying that the steelworks does not have the funds to continue operating

01:10for the next 12 months and they're still trying to access financial documents and records

01:16from the previous owner, GFG Alliance.

01:19Now in response to these allegations, GFG says that safety has always been its number

01:24one priority and has made significant investment into the steelworks over the past several

01:29years.