Gupta is ‘finalising new financing’ to ‘catch up’ with GFG’s creditors
The embattled owner of the Whyalla steelworks says GFG Alliance is in the process of “vigorously finalising new financing” as the firm works to “catch up” with its creditors.
In a statement released late on Tuesday afternoon, Sanjeev Gupta said GFG was “steadily ramping up production”, adding: “We can only be successful if all stakeholders work together.”
The statement comes after a week of increased scrutiny on Mr Gupta’s company, with a senior public servant on Monday revealing GFG owed the SA government about $15 million in unpaid water bills, on top of its unpaid royalties.
Premier Peter Malinauskas earlier said GFG owed the state government “tens of millions of dollars” in unpaid mining royalties.
Sanjeev Gupta says GFG is “catching up” to its creditors. (ABC News: Che Chorley)
The Whyalla steelworks was plagued by financial problems throughout 2024, including two separate months-long blast furnace shutdowns that halted steel production and cost GFG millions.
Mr Gupta’s problems have not been limited to South Australia, with hundreds of workers at his NSW coal mining operation being stood down after the company failed to pay its suppliers.
In his statement on Tuesday, Mr Gupta assured his creditors and stakeholders that GFG was making “meaningful progress” and expressed gratitude for their “remarkable patience”.
“While we still have considerable work ahead, these clear improvements are vital as we work to catch up with our creditors,” he said.
“To expedite our recovery, we are vigorously finalising new financing. Although this process has taken a bit longer than anticipated, I remain confident of its delivery.”
The Indian-born British billionaire added that the company’s revenue was “continually increasing” thanks to additional steel sales.
“We have already reduced our losses in the steelworks by more than 30 per cent since the restart of the blast furnace,” Mr Gupta said.
“This continuous ramping-up is critical and we can only be successful if all stakeholders work together to not lose ground.”
Mr Gupta says GFG has invested a lot of money in Whyalla and is committed to the town. (ABC News: Che Chorley)
The GFG boss also sought to offer reassurances to the community of Whyalla, saying he was still committed to the city.
“GFG has invested vast sums of money to keep Whyalla going and Whyalla will remain our highest priority,” he said.
“The prolonged disruption to the operation of the blast furnace has taken a toll, but I want to assure you that we are making meaningful progress.”
Asked on Monday if the situation at the steelworks would “come to a head this week”, Mr Malinauskas said: “I don’t think so, but that’s possible.”
“When I say I don’t think so, I don’t know — that’s probably a more accurate answer,” he said.
“I think there’d be two or three people within GFG who would really know.”
