Jindal Steel and M Resources Bid for Whyalla Steelworks as Minister Weighs Two Offers

Abc reported that Indian company Jindal Steel is competing with Queensland coal enterprise M Resources to buy the Whyalla steelworks. A final decision on the sale is expected later this year. Jindal Steel chair Naveen Jindal has been summoned to appear before a Delhi court on July 17.

The summons follows a lengthy investigation by India's Central Bureau of Investigation into alleged irregularities in the allocation of coal licences in Chhattisgarh, part of the more than decade-long Coalgate scandal. A Jindal Steel spokesperson said the company has always adhered to applicable laws and regulations.

The spokesperson added that the matter is sub judice and it would not be appropriate to comment further.

South Australian Energy and Mining Minister Tom Koutsantonis said the tender process would be evaluated on its merits. He stated that issues in another country would be dealt with by that country's legal system and that the government had sought reassurances while focusing on the merits of Jindal's operations worldwide.

Koutsantonis said no decision had been made and the two bidders were very difficult to decide between.

He noted both candidates were well credentialed, financially backed, transparent and open with the government. Koutsantonis added that the Jindal group had informed authorities about the situation in India. The South Australian government stripped the Whyalla steelworks from British industrialist Sanjeev Gupta's GFG Alliance in February 2025.

GFG Alliance had purchased the steelworks in June 2017 after the collapse of previous owner Arrium. The iron-producing blast furnace remains offline, with workers preparing one final attempt to restart it. Abc reported last week that hundreds of jobs are at risk if the blast furnace permanently closes.