(Repeats story from Sunday, no changes to text)
By Peter Gosnell
June 19 (Reuters) - The Turnbull government offered A$49.2 million ($36.4 million) in assistance on Sunday to a struggling steel firm in the South Australian town of Whyalla if it is reelected next month, as major parties worry about losing seats in a region hit hard by the end of the mining boom.
The funds, which would be in the form of a loan, would allow troubled Arrium Mining and Materials ARI.AX to buy equipment to upgrade lower quality iron ore for use in the steelmaking process.
The announcement follows a promise by the Australian Labor Party's (ALP) earlier this week to inject $100 million into the mining and steel making operations.
Arrium is currently in the hands of voluntary administrators who are preparing the company for a sale process which could commence as soon as August.
But the future of its mines and the Whyalla steelworks remains uncertain, reflecting the wider economic malaise in South Australia, which has been hit by plunging prices for resources such as iron ore and copper and the closure of car plants.
Unemployment under Labor Premier Jay Weatherall has risen to 6.8 percent, the highest for any Australian state.
As worries about job security grow, the major parties have become increasingly focussed on the state where polls suggest local independent Nick Xenophon and his Nick Xenophon Team candidates could attract up to 20 percent of the vote in the July 2 election.
That could give Xenophon and his team a strong presence in the Senate, possibly a seat in the lower house and most importantly, the balance of power in what is shaping up to be a tightly contested race.
In April, the government confirmed that the country's new submarine fleet would be built in South Australia despite concerns it will inflate costs.
In the same month, Labor announced a six-point plan to support the local steel industry, which would involve funding to ensure more South Australian steel was used in public projects. ($1 = 1.3519 Australian dollars)