Our defence requires the Federal Government to invest in Whyalla’s Steelworks

Defence Today

The Whyalla steelworks, a historic industrial asset in South Australia, has resumed operations after a challenging four-month shutdown. This restart marks a crucial step forward for the plant, its workforce, and the surrounding community. However, the recent turbulence faced by Whyalla highlights a critical question: why is the federal government not investing more in Australian steelmaking?

In an era marked by geopolitical uncertainty and increasing threats of conflict, Australia’s capacity to produce its own steel is more important than ever. History has repeatedly demonstrated that industrial self-sufficiency is a strategic asset in times of crisis. Steel is the backbone of national infrastructure and defence capabilities—from building ships and armoured vehicles to reinforcing critical infrastructure—and Whyalla’s steelworks should be at the heart of Australia’s national security strategy.

The return to steelmaking at Whyalla is a testament to the determination of its management team and workforce. Led by GFG’s global chief manufacturing officer, Theuns Victor, the “back to black” taskforce worked tirelessly to stabilize the plant and bring it back online. The sight of molten steel being cast once again was described as an emotional moment by Victor, who cautioned that more work is needed to ensure long-term stability.

“The blast furnace is currently running at half its capacity with a number of issues yet to be resolved,” Victor said. “Despite this, I am very confident we will deliver the plant to stability and then to its full capacity, but this will take time and patience.”

Prolonged shutdowns like the one Whyalla experienced can cause significant damage to aging facilities, making restarts a complex and costly process. The return to operations is therefore a significant achievement, but it also underscores the vulnerability of Australia’s steelmaking capacity.

Australia’s reliance on imported steel poses a serious risk to national security. In times of global conflict or economic instability, supply chains can be disrupted, leaving the country vulnerable. The federal government must recognize that steelmaking is not just an industrial issue—it is a matter of national defence.

Countries like the United States and China have long understood the strategic importance of maintaining robust domestic steel industries. Both nations have heavily invested in their steel sectors to ensure they can meet their own infrastructure and defence needs in times of crisis. Australia must follow suit by providing substantial federal support to Whyalla and other steelmakers.

Investing in Whyalla is about more than just preserving jobs in South Australia. It’s about ensuring Australia has the industrial capacity to produce critical materials in times of need. Without a strong domestic steel industry, the nation risks being unable to meet its defence and infrastructure requirements during a conflict.

GFG executive chair Sanjeev Gupta has outlined a vision for Whyalla to become a leader in green steel production. The “back to black” strategy is a stepping stone toward this ambitious goal. Green steel, produced using renewable energy sources and innovative technologies, represents the future of sustainable steelmaking. By investing in Whyalla now, the government can position Australia as a global leader in this emerging field.

The reopening of Whyalla is also good news for the iron ore and coking coal mines that supply it, including the Middleback Ranges operations in South Australia and the Tahmoor coking coal mine in NSW. Supporting Whyalla’s steelworks means supporting a broader ecosystem of industries that are vital to Australia’s economy.

The federal government must take decisive action to secure Australia’s steelmaking future. This includes providing financial support to modernise facilities like Whyalla, investing in research and development for green steel technologies, and implementing policies that prioritise the use of Australian-made steel in infrastructure and defence projects.

As the world becomes more unpredictable, Australia cannot afford to be complacent about its industrial capabilities. The return of Whyalla’s steelworks is a cause for celebration, but it should also serve as a wake-up call. Investing in Whyalla is investing in Australia’s future resilience and security.

In times of peace, steel builds infrastructure. In times of war, steel builds defence. Ensuring Australia’s ability to produce its own steel is not just an economic priority—it is a national imperative.