Whyalla Steelworks bleeds money after power cut

POWER REQUIRED: The Whyalla Steelworks is bleeding money as it waits for external power to be reconnected.
POWER REQUIRED: The Whyalla Steelworks is bleeding money as it waits for external power to be reconnected.

Disaster has been averted for the Whyalla Steelworks, but it’s current situation is costing it about $2.5 million a day.

The plant is running on its own power, but needs external power to be fully operational again.

An Arrium spokesperson told the Whyalla News that the blast furnace is now running, and the plant’s machinery is no longer at ‘critical risk’.

The steelworks is currently able to produce steel billets, but more power is needed for production to be in full swing.

Administrators KordaMentha have been in contact with the government about a time frame for power restoration, but it’s likely the plant will not receive external power for ‘multiple days’.

Power to the Whyalla Steelworks was cut during a state-wide power outage last week, caused when a once-in-a-generation storm which hit the city and surrounding areas.

Electricity was restored to Whyalla at approximately 4pm last Thursday, but the steelworks are still without external power.

Whyalla News