Give WA some of taxpayer billions earmarked to save Whyalla Steelworks, CME boss Rebecca Tomkinson suggests

The Chamber of Minerals and Energy WA reckons the Federal Government’s multi-billion-dollar bailout for South Australia’s imploding steel industry should be funnelled towards WA instead. The Federal and SA governments started pumping in vast sums of cash from a $2.4 billion rescue fund into Whyalla Steelworks after GFG Alliance, owned by British industrialist Sanjeev Gupta, failed to pay its debts. GFG on Wednesday was stripped of Whyalla’s ownership after the SA Government called in administrators over the unpaid money. Part of the $2.4b will go towards desperately-needed upgrades at the deteriorating steel plant following years of neglect by GFG after it scooped up the operation from administration in 2017. CME chief executive Rebecca Tomkinson said while it was pleasing to see government support for the Whyalla community, WA was “the sensible choice for funding” thanks to the State’s green iron potential. “Western Australia is already the iron ore capital of the world. It’s well established that we are best placed to become a significant manufacturer of green iron,” Ms Tomkinson said. “Many of our members have also already invested significant time and money researching and developing prospective green iron pathways, including through partnerships with universities. “The WA Government has also shown strong support for green iron, most recently through its $75 million commitment to the NeoSmelt project in Kwinana.” There are no green iron production sites in WA yet, but the likes of Rio Tinto, BHP, Woodside and Fortescue are developing trial plants. CME released a green iron report in December, finding large-scale production of green iron in WA could reduce global emissions by 1.2 per cent by 2050. This would effectively offset nearly every tonne of carbon dioxide currently produced in Australia, CME claims.