Ann: Agreement Signed to Save Arrium Australia and Whyalla, page-34

You've got up to 5000 employees. They all lose their jobs and unemployment goes over 8% and government loses 10s of millions in payroll tax. Plus whatever mining royalties Middleback ranges pump out plus access to the port. When you scope out to see the bigger picture there's a lot more at stake than just political point scoring.

Pretty naive to think any state government would a) act differently in this scenario and b) intentionally try and screw over shareholders. Their first and foremost priority is always to see operations continue.