BlueScope has announced it will lead an international consortium of steelmakers to explore the potential acquisition and development of the Whyalla Steelworks in South Australia.
The Australian steelmaker confirmed it has entered into a Collaboration Agreement with Nippon Steel Corporation of Japan, JSW Steel Limited of India, and POSCO of South Korea.
The group collectively represents a market capitalisation of approximately AUD 115 billion and a combined steelmaking capacity of around 130 million tonnes.
According to BlueScope, the consortium has submitted a non-binding and indicative expression of interest, marking the first step in the ongoing sale process of the Whyalla operations.
The consortium is focused on evaluating the strategic opportunities and capital requirements associated with the site.
BlueScope said it will use its “detailed knowledge of the Australian steel industry and Whyalla assets” to guide the consortium through the initial phases of assessment.
The group said it is considering Whyalla as a possible future hub for lower emissions iron production, serving both domestic and export markets.
BlueScope noted this could support broader efforts to decarbonise global steelmaking.
If invited to the next stage of the process, the consortium said it plans to jointly conduct due diligence and consult with both the South Australian and Federal governments, particularly in regard to potential government support to sustain steelmaking in the region.
However, BlueScope clarified that the collaboration does not bind any member to make a formal acquisition offer. “Any decision to make an offer to acquire and develop expanded operations at Whyalla would be subject to due diligence and the consortium members’ return on investment hurdles,” the company stated.
