SENATOR TIM AYRES, MINISTER FOR INDUSTRY AND INNOVATION AND MINISTER FOR SCIENCE: I'm delighted to welcome you for the second time today, but this time to Middle Bank. This is the 12-month anniversary of the decision that the Commonwealth Government led by Anthony Albanese, and the South Australian State Government led by Peter Malinauskas, made to step in and intervene in the national interest and the interests of the South Australian economy in the Whyalla Steelworks and all of this associated infrastructure.

And 12 months on we are making steady progress with two governments, with a Future Made in Australia and with the steel industry and a future made right here in Whyalla.

As a result of this intervention the Whyalla Steelworks is stronger, is stabilised and is safer. A more stabilised steelworks with more production staff, and I'm delighted to say, more than 70 apprentices, some of whom are right here, recruited to make the steelworks a reliable operation, with good jobs, good, blue-collar engineering and production and trades jobs here in Whyalla, better relationships with the supply chain and all the contractors in town and in the Upper Spencer Gulf means a stronger, more viable steelworks.

It's safer in terms of its approach to safer production. When we took over these steelworks there were no guarantees that it was safely producing. And that intervention has elevated production but elevated safer production as well. Production [is] at record volumes, and this is an intervention that is doing its work, and it's clear to me that had we had a different kind of government in Canberra, and a different kind of government here in South Australia, this intervention would not have occurred.

A Federal Government – perish the thought – led by Angus Taylor, who in his previous life was a cost-cutting consultant advising Australian businesses how to offshore overseas, how to contract out, how to get smaller, not larger. Angus Taylor as a consultant never saw a factory that he didn't want to downsize, never saw an industrial facility that he didn't want to send offshore. His record in government and in the Parliament has been no better.

But the Albanese Government is getting on with the job of delivering for a Future Made in Australia, delighted to be part of this effort here with Premier Peter Malinauskas who has led South Australia so ably, and he's so determined to set up the South Australian economy with an industrial and resources future.

This facility that we're in today providing magnetite for the Whyalla Steelworks producing steel here, that is there for the global economy and as the global economy shifts to net zero, providing lower emissions steel and iron products to the world, South Australia is absolutely leading the way.

And the final thing I wanted to say is none of this happens just because two governments make up their minds and act in the national interest and act boldly to deliver for Australia and South Australia. It also happens because businesses and workers and trade unions resolve to work together in the national interest. So much has been achieved. I met these young apprentices today. The world is their oyster, this is an enormous opportunity for them, this is all about Australians working together for a Future Made in Australia.

I'll hand over to Peter Malinauskas, and then we'll be able to take questions in a moment. Thank you. 

PETER MALINAUSKUS: Thanks very much, Tim. Thank you for your leadership, it’s great to be here with critical staff here are a core part of the integrated steelworks operation, I think people have seen today, right through the port.

This time 12 months ago, it's just important to reflect back on where we were. This day 12 months ago, everybody around the country was speculating that the Whyalla Steelworks and the whole steelmaking enterprise in and around the Upper Spencer Gulf was on the verge of collapse. Thousands of people losing their jobs; mines closing down; steel operations ceasing; Whyalla no more.

We were planning behind the scenes while others were speculating, while others were playing politics, behind the scenes my government was formulating a plan for an unprecedented intervention to see the Whyalla Steelworks and the integrated operations go out of the hands Sanjeev Gupta and into the hands of a better future enabled by a collaboration between the State and Federal Government.

Today, fast‑forward 12 months, where are we at? Record production levels coming out of the steelworks. Plans to see this mining expansion go underway in a way that had always been promised and accounted for, and more apprentices being employed. In fact, just in the last few weeks an additional 27 apprentices have been employed to take up the number to 70, and it's great to be able to chat to a few of those people here today.

Without our intervention, a plan crafted thoughtfully, well calibrated in conjunction with the Federal Government, we would not be here today. Yet here we stand on the precipice of a brighter future. To that end, I've got a few updates to make.

Starting with those [indistinct] steelworks into administration to take control but do so with the plan of how we're going to get the steelworks out of administration. That's where the Commonwealth's collaboration has been particularly critical.

As we transition through that sale process we started with 70 would-be interested parties. A lot of work has transpired over the last 12 months to then take that 70 down to 12, who expressed formal interest in a buying process. I can now report that we've got 12 down to 5. So, we are now down to a short list of 5 incredible companies and consortia of companies from all over the world who want to acquire the Whyalla Steelworks, the mine and port operations to be able to set this place up for the future.

Now why would they do that? There's a few things that come together at once. Firstly, is the resource in the mines, where we are home to one of the world's best high-quality magnetite. Magnetite, for the benefit of those people who are on the journey of understanding the opportunity, magnetite is a form of iron ore that particularly lends itself to the production of steel in a more decarbonised form, an exceptionally high-value product which here in the Middleback ranges we are graced with in abundance.

To take that mine then into an integrated steelmaking operation with a port adjacent to it, collectively represents a massive economic opportunity for a would‑be steel maker and miner to inquire into integrated operations and participate in the global market as we cease steel production and iron production graduate towards a more decarbonised product, bearing in mind that steel production accounts for 8 to 10 per cent of all global carbon emissions.

So today, we get the 70 would‑be bidders down to 12, and now a final shortlist of 5, as we continue to narrow it down to the final owner that we hope to arrive at before the end of the year.

We continue to advance there, but I'm very pleased to report today that a wider economic and commercial analysis has been conducted by the administrator in conjunction with the State and Federal Government for what's called with the Mining Expansion Project here at this particular mine behind you.

You would have seen as we walked down the pit the different colour gradient change as we get deeper, closer to the magnetite resource. As part of the existing funds that have already been allocated, we make available a $20 million loan program to see to the forward acquisition of critical mining equipment to unlock what's called the Mining Expansion Project 1: M1, M2, M3. $20 million will see to the unlocking of the M1 opportunity to see a further acceleration of the expansion of the mining operations here at Iron Duke.

That's a big opportunity, it is absolutely necessary to continue the graduation to build a commercial and economic enterprise.

We make this undertaking in conjunction with the would‑be owners of the enterprise because they see this as being commercial and economic in its own right, which we've always known to be the case. It's just that the former owners of this enterprise couldn't raise the cash and the capital to make it happen.

We are now addressing it. So out of the $265 million obligation, $20 million there to unlock the Mining Expansion Project. So, the sale process proceeds. We've now narrowed it down to five serious would‑be bidders, we expend $20 million to unlock mining and I announced today also $970,000 to continue to see an investment in TAFE here in Whyalla to unlock more apprentices coming through as the requirement of the workforce ramps up.

So, more young people getting more jobs, the mine expanding and the sale process proceeding down to five serious bidders from around the world. And that's all because of the intervention that we made on 19 February last year.

Be under no misapprehension, there is an economic opportunity here in the Upper Spencer Gulf that we want to bring to life in conjunction with the Federal Government.

GFG and Sanjeev Gupta we are never going to allow to get in our way. We owe it to the people of the Upper Spencer Gulf, in fact owe it to the nation to bring this economic opportunity to life and offer more prosperity for our State in the way that produces products the rest of the world wants and needs.

We're serious about it, which is why we're willing to act and make a difference. Today's announcement is another demonstration that things are heading in the right direction, and we look forward to that work continuing over the year ahead should this Government be given the opportunity to do so again in March.

On that note, I'll invite representatives from OneSteel, the mining operations here, to say a few words. I'm very, very grateful for their ongoing support.

I should introduce Gavin, sorry. Gavin has been – I hope you don't mind me saying this – Gavin has been integral to the operations here, and a good friend of mine for many, many years. He is a steadfast and committed member of this community and has been doing an extraordinary amount of work not just over the last so many years, but particularly in the most recent period going into administration, and I just want to thank Gavin and his whole team here at the mines. You guys have seen the steelworks and [indistinct] steelworks, but I don't know if you yet appreciate the size and the scale of mining opportunity that Gavin's been integral in unlocking M1 [indistinct].

GAVIN HOBART: So, thank you, Premier, and thank you to all the dignitaries for making the time to come and have a look at our humble Whyalla.

The exciting part is that the vision that has come in the 12-month anniversary from where that vision could have all unravelled if it weren’t for the intervention, unprecedented as it was. It's a big excitement in Whyalla, to all of the OneSteel employees, and for the future. When we look at the apprentices starting, it's the youth that can see a future now and can see that the natural resources that exist here in Whyalla, they're the envy of many places.

Everyone's got perhaps one or two elements, but Whyalla has all of the elements necessary to meet the vision that our Premier and the Malinauskas Government are backing and they've been able to finance that, and as we say, with it being shortlisted, we know that in that handful of buyers or bidders that are looking to take up this opportunity, there's a shared vision in there. So, the future we aspire to, and aim to unlock and bring for the next generation is on the cusp.

We're very excited to host and showcase what is here today, but the excitement genuinely is in what is to be unlocked. But we couldn't be here without the support we’ve had through both the State and Federal Government believing in the vision, believing in the natural resources that we have, and being able to look at a new commercial way to move us forward.

We've got the old steelworks that was and has served us for 100 years. For the next hundred years, we see that, you know, low carbon emission, that's necessary, and the thing that we have here in the mine is the key ingredient to unlock current technology to bring it to life.

Thank you to the Premier, thank you, Tim, thank you to all of those that are in support of what we're seeking, and we look forward to further updates in the short term of how that sale process goes.

[Questions inaudible]