Up to 500 workers are set to lose their jobs at South Australia's Whyalla steelworks after administrators and the state government decided to permanently close the site's blast furnace. The closure marks a significant setback for the plant, which has received more than $1 billion (AUD) in state and federal support since being placed into administration in February 2025, when the government took control from previous owner GFG Alliance following unpaid royalty payments.

The job losses will shrink Whyalla's workforce from around 1,700 to 1,200, with Premier Peter Malinauskas describing the ageing furnace as "clapped out" and no longer viable to operate safely. The furnace, built in the 1960s and last substantially upgraded in 2004, has been offline since April after workers were unable to restart it. Administrators KordaMentha said continuing to pursue a recovery was "no longer feasible", warning of further reductions in labour hire and contractor roles. Two bidders, Jindal Steel and M Resources, remain interested in buying the steelworks.