While the US government is considering a 25% import tariff on Australian steel, South Australia’s Whyalla steelworks, owned by Sanjeev Gupta’s GFG Alliance, faces potential closure. Mean while, Western Australia is welcoming investments from South Korea’s POSCO steelmaker. Hypothetically, could POSCO be the ‘white horse’?
Image: Whyalla Steelworks
Whyalla Steelworks
Sanjeev Gupta’s GFG Alliance Whyalla steelworks – producing 1.2 million tonnes of raw steel per year- is facing a cash crunch, with $15 million in unpaid water bills to SA Water and no royalty payments made this financial year. Additionally, the company secured a $150 million loan to pay staff and suppliers, and to fund repairs at the Whyalla steelworks. In February 2025, Gupta’s GFG Alliance obtained a six-year loan of approximately A$330 provided by King Street Capital Management and Sona Asset Management, for its North Queensland Export Terminal Pty Ltd. It is intended to refinance debt maturing in June.
The Web of Deception Expands
In November 2024, the US Department of Justice and Securities and Exchange Commission (SEC) charged Gautam Adani and Sagar Adani, executives of Adani Green Energy Ltd., and Cyril Cabanes, an executive of Azure Power Global Ltd., for conduct arising out of a massive bribery scheme – during the alleged scheme, Adani Green raised more than $175 million from U.S. investors and Azure Power’s stock was traded on the New York Stock Exchange – related to enable the two renewable energy companies to capitalize on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government. (US SEC). According to the SEC’s allegations, the bribery scheme was orchestrated to enable the two renewable energy companies to capitalize on a multi-billion-dollar solar energy project that the companies had been awarded by the Indian government.
A month after this, Gupta’s company dropped a US$500mil loan deal with the US International Development Finance Corporation to finance Sri Lanka Columbo’s port terminal project.
Governments in Bangladesh and Sri Lanka are re-examining disputed Gupta power projects partnerships.
Enter POSCO
POSCO, a leading South Korean steelmaker, announced in 2023 plans to invest a total of $40 billion in Australia by 2040. This investment includes $28 billion for hydrogen manufacturing and $12 billion for green steel production. The goal is to produce 1 million tons of hydrogen by 2040 and to develop hydrogen-reduced steel technology
POSCO headquarters Seoul 2023. Jeong-woo Choi, CEO of POSCO Group (center on the right)
and Mark McGowan, former Premier of West Australia (center on the left).
In early 2024, the Western Australian government allocated land in the Pilbara region to POSCO for hydrogen development, designating it as one of the country’s seven hydrogen industrial hubs. This move aligns with Australia’s strategy to become a leader in clean hydrogen production.
South Korea’s POSCO Group / POSCO Co Ltd and Port Hedland Iron Pty Ltd have been awarded $15 million from the Western Australian Government for their Port Hedland Iron Project. This funding is part of the Investment Attraction Fund, aimed at supporting clean energy projects that will help diversify the economy and create jobs. The project focuses on decarbonizing the steel manufacturing supply chain by producing low carbon hot briquetted iron for export to the Asian market.
POSCO has already invested over 4 trillion KRW (approximately $3.07 billion) in Australia for the development of resources such as iron ore, lithium, and nickel. The company views Australia as an optimal country for green hydrogen production due to its abundant land, rich solar and wind resources, progressive laws, and favorable business environment.
POSCO has outlined significant investment plans totaling approximately $88 billion by 2030 throughout Asia and Australia, focusing on various sectors to drive sustainable growth and innovation. Through these strategic investments, POSCO aims to strengthen its position as a global leader in sustainable steel production and contribute to the advancement of eco-friendly technologies worldwide.
Key Investment Areas:
- Eco-Friendly Steel Production: POSCO plans to invest around $21.2 billion in environmentally friendly steel manufacturing processes, aiming to reduce carbon emissions and enhance sustainability in its operations.
- International Expansion: Approximately $35 billion is allocated for international market investments, including projects like the joint venture with India’s JSW Steel to establish an integrated steel plant in Odisha, India, with an initial capacity of 5 million metric tons annually.
- Clean Energy Initiatives: POSCO is investing in clean energy projects, such as the development of blue hydrogen and other renewable energy sources, to support its transition to eco-friendly operations.
- Resource Development: The company has invested in securing essential resources, exemplified by its $40 million investment in Black Rock Mining’s Mahenge graphite project in Tanzania, ensuring a stable supply of materials critical for various industries.
It will be an interesting space to watch over the coming months and the future of Whyalla Steelworks and loyal staff, and Australia’s top export commodity.
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