By AFP - Agence France Presse
Australia seeks to turn bankrupt steel mill into a 'green' center
A bankrupt Australian steel mill will be transformed into a “green iron and steel” production center, Prime Minister Anthony Albanese said on Thursday, as the government stepped in with a billion-dollar rescue package.
More than 1,000 workers faced the possibility of losing their jobs after the Whyalla steel mill in South Australia was swamped by mounting debts.
Albanese promised a major overhaul on Thursday to save the site, which was run by British billionaire Sanjeev Gupta's GFG Alliance.
More than Aus$2 billion (US$1.27 billion) has been set aside to pay off debts and improve infrastructure to maintain operations but with less polluting methods.
“Investment in green iron and steel will ensure future demand for Australia's iron ore as the world moves towards lower emission iron and steel,” said Albanese.
“Green metals are essential for global decarbonization, as iron and steel production is responsible for 8% of global emissions.”
Whyalla would receive up to Aus$500 million (US$317 million) from a newly created sovereign Green Iron Fund, Albanese said.
Metals such as steel and aluminum are usually produced in huge factories that rely on polluting coal-fired energy.
The new initiative seeks instead to power these factories with renewable electricity, reducing emissions in the process.
Whyalla is one of only two Australian steel mills and produces 75% of Australia's structural steel, according to government figures.
Australian Workers Union secretary Paul Farrow said the country's economic sovereignty depends on Whyalla Steelworks remaining open.
“Whyalla provides three-quarters of Australia's domestic steel supply. “Without it, we would be indebted to foreign nations for the building blocks of our society.”
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