Advertisement

Arrium confident of fed funds before poll

The administrator of troubled steel and mining group Arrium is confident the steelmaker will secure a federal funding commitment before it goes on the market later this year.

May 30, 2016, updated May 30, 2016
The steelworks in Whyalla.

The steelworks in Whyalla.

KordaMentha is meeting with commonwealth and South Australian governments in Adelaide on Tuesday to talk about its proposal for Arrium, which went into voluntary administration in April, putting thousands of jobs at risk.

“Some of those funds, we’d like to see before June 30 and some over a three-year horizon,” Mark Mentha told AAP on Monday.

“Some are vital for the budget over the next year and we’re selling the business based on the financial year 2017 forecast.”

KordaMentha expects the restructure and sale of Arrium to be complete by the end of the year.

However, federal and state governments are reluctant to show their hands just yet.

While state Treasurer Tom Koutsantonis said the South Australian Government would support Arrium, he wouldn’t quantify the commitment.

“I’m not going to flag now, in advance, what we’re prepared to put in other than to say there’s a considerable amount of money,” he told ABC radio.

He said that rather than put money into the company now while it’s in administration, it would be better to provide a federal-state facility for a new owner to draw down on.

Federal industry minister Christopher Pyne agreed, saying the Government would not be rushed into a decision by the administrator.

“We’re going to act responsibility with the taxpayers’ dollars and we’re not going to be rushed into a decision in an election climate,” Pyne told the ABC.

– with AAP

 

Local News Matters
Advertisement
Copyright © 2024 InDaily.
All rights reserved.