✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

South Australia offers funding for new owner of Arrium steel plant

Published 09/06/2016, 06:40 pm
Updated 09/06/2016, 06:50 pm
© Reuters.  South Australia offers funding for new owner of Arrium steel plant
ARI
-

MELBOURNE, June 9 (Reuters) - The South Australian government said on Thursday it would provide A$50 million ($37 million) in funding to help keep Arrium Ltd's ARI.AX loss-making Whyalla steelworks open under a new owner.

State Labor premier Jay Weatherill has also pressed Australia's two major parties to commit to contribute A$100 million from the federal government to help keep Whyalla open.

"The Arrium operations at Whyalla are critical to both South Australia and the nation as a whole - it is essential that we retain our sovereign steel-making capability," Weatherill said in a statement.

The call on national politicians to support Whyalla came amid heavy campaigning in South Australia for the July 2 federal election, as the Liberal National coalition faces a potential loss of seats in the state.

Arrium, an iron ore miner and steel producer, went into voluntary administration in April, hit by weak iron ore and steel prices. Administrators have put its best business, U.S.-based Moly-Cop, up for sale. U.S. private equity funds, Cerberus Capital Management and Argand Partners, are eyeing Arrium's businesses, provided a co-investment package from the government for Whyalla makes it enticing enough to be part of a future buyout, the Australian Financial Review reported last month.

($1 = 1.3444 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.