Whyalla: Australia's Prime Minister and the Premier of South Australia have announced a 1.5 billion U.S. dollar support package for a major steelworks in Whyalla following its owner's entry into administration.

According to Namibia Press Agency, the announcement by Anthony Albanese and Peter Malinauskas follows the SA government's move to force the steelworks' owner, a subsidiary of the Gupta Family Group (GFG) Alliance, into administration due to significant unpaid debts.

The support package, valued at 2.4 billion Australian dollars, aims to secure the future of the steelworks by ensuring payments to staff and creditors while a new owner is sought. Albanese emphasized the importance of steelmaking to Australia's economy, noting that Whyalla accounts for 75 percent of the nation's structural steel production.

The funding will be delivered in three phases: an immediate phase of 100 million Australian dollars for creditor payments and infrastructure, a short-term phase of 384 million Australian dollars to maintain operations during administration, and a long-term phase of 1.9 billion Australian dollars for upgrades and new infrastructure.

Malinauskas stressed that the initiative aims to secure a sustainable future for the steel industry in Australia rather than merely ensuring the steelworks' survival. Meanwhile, GFG Alliance's chief executive, Sanjeev Gupta, has expressed dissent, criticizing the government's decision and seeking legal counsel as reported in an internal memo.

The Whyalla facility, which produces around 1.2 million tonnes of raw steel annually, is now under the administration of Melbourne-based firm KordaMentha, which is focused on preserving approximately 4,000 jobs at the plant.