Whyalla mining contractor owed more than $100 million
A mining contractor connected to the Whyalla Steelworks has revealed what it’s owed by the company formerly owned and operated by Sanjeev Gupta.
NRW Holdings yesterday told shareholders that its subsidiary Golding Contractors – a mining contractor that operates in the Middleback Ranges and is connected to GFG Alliance – is owed $113.3 million by OneSteel Manufacturing.
OneSteel – the former operator of the Whyalla Steelworks – was last week placed into administration by the state government which passed special-purpose laws in just minutes to take control of the beleaguered facility.
The NRW subsidiary has been providing mining services under an agreement at the South Middleback Ranges, Iron Baron Mining Area and Iron Knob since 2020. That agreement was set to finish on 31 January 2025, but NRW told shareholders yesterday it has been extended for another year.
In mid-January, it was revealed NRW cut more than 300 jobs at the Upper Spencer Gulf operations, with Mining and Energy Minister Tom Koutsantonis at the time noting that the redundancies came alongside haematite resources running dry in the region.
Heamatite is an iron oxide mineral used in steelmaking, with the mines operated by SIMEC. The ABC reported in May 2024 on leaked documents from SIMEC Mines which said that hematite resources would be fully exhausted within 18-24 months.
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Though it is owed more than $100 million, NRW confirmed it had its interests protected.
“As part of its internal management process, NRW Holdings and Golding had been monitoring its payment receivables under the MSA,” NRW said.
“To protect its position, Golding previously obtained a guarantee and indemnity from both Liberty Primary Metals Australia and Whyalla Ports, as well as first ranking security over the assets and shares of Whyalla Ports.”
Whyalla Ports operates the deep-water ports at Whyalla, while Liberty Primary Metals is the former parent company of OneSteel Manufacturing and the current owner of Whyalla Ports and Tahmoor Coal – the latter of which Gupta said he would divest as part of his attempts to recapitalise his sprawling global interests.
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Administrator KordaMentha yesterday confirmed the Whyalla Port was currently “fully operational” and not part of the administration.
NRW said that since 19 February when the state government appointed KordaMentha as administrators of OneSteel it was “continuing to provide mining services at planned production levels under the direction of the Administrators in accordance with the terms of the MSA that remains in effect”.
“Golding has had confirmation that it will be paid by the administrators for all services performed in accordance with the MSA on and from 19 February 2025,” NRW said.
It added that there were “various options regarding the enforcement of its security and will make a decision on the path forward based on the best interest of its shareholders and other stakeholders in what is a complex environment”.
NRW entered into a trading halt last Wednesday amid the chaos of the Steelworks suddenly being thrust into administration.
The company said it was assessing the situation and would release its half-year results when the trading halt was lifted.
On Friday, the company voluntarily suspended its shares from trading on the ASX while it continued to assess the situation and re-evaluated the implications of the Steelworks administration on its half-year results.
“Given NRW had effectively completed and was due to release its half-year results on the 20 February 2025 the appointment of administrators to OneSteel has necessitated NRW and its auditors to consider any implications, as a subsequent event,” NRW said.
Yesterday, the company said it would release its half-year results “this week”.
It also confirmed its balance sheet remained strong with cash on hand at $284.4 million, supported by $330 million of available debt.
