Ann: Trading Halt, page-14

Here’s a reminder of the useful story in The Australian from Feb 25:

Golding is still working there and, I thnk, is definitely  in the running to be awarded a continuation of services under the mining expansion when the current (extended) contract runs out.
Presumably if the port can be legally proved to be NOT owned by Gupta the security is worthless.….

But the fact it’s the government now holding the cards  surely means good will will come into play in regards coming to, at least, a renegotiation of the security?

As  reported back in February, it’s a complex legal environment and -hopefully - this complexity is the reason for the halt as new legal agreements are brokered .

cheers

Spoiler : The Australian on NRW Feb 25

https://www.theaustralian.com.au/bu...d/news-story/aa3bc7c5a35910d5f78bfe7adc8e9078

GFG’s largest creditor at Whyalla says it has a claim on the port if it’s not paid

Mining contractor Golding says it is owed a huge amount of money by former Whyalla steelworks operator GFG, but has security over the Sanjeev Gupta-owned port.

CAMERON ENGLAND
@CameronEngland
2 min read
February 25, 2025 - 6:27PM

The port at Whyalla is crucial to getting iron ore to market.

Mining contractor Golding says it is owed a huge amount of money by former Whyalla steelworks operator GFG Alliance, but its interests are protected as it has security over the port which is still owned by one of GFG head Sanjeev Gupta’s companies.

Golding Contractors’ parent company NRW Holdings made a statement to the ASX on Tuesday, saying it was owed $113.1m by OneSteel Manufacturing — the GFG Alliance subsidiary which owns the Whyalla steelworks, and which was placed into administration by the South Australian Government last week.

The company said it had “various options” for the enforcement of its debt, which it would now consider.
NRW said it had moved to protect its interests before OneSteel Manufacturing was placed in administration by receiving a guarantee from Mr Gupta’s company Whyalla Ports, which runs the port and is not part of the administration of the steelworks.

“As part of its internal management processes, NRW Holdings and Golding had been monitoring its payment receivables under the mining services agreement,’’ the company said in the statement.


The Whyalla Steelworks were put into administration by the South Australian government last week. Picture: Brett Hartwig

“To protect its position, Golding previously obtained a guarantee and indemnity from both (GFG subsidiary) Liberty Primary Metals Australia and Whyalla, as well as first ranking security over the assets and shares of Whyalla Ports.

“NRW has various options regarding the enforcement of its security and will make a decision on the path forward based on the best interests of its shareholders and other
stakeholders in what is a complex environment.’’

NRW pointed out that the deep sea port was “critical” to the operation of the steelworks.

“The port is critical to OneSteel’s operations as it enables the export of iron ore from

OneSteel’s mining activities and the support of its steelmaking operations,’’ NRW said.

“The port also handles the import and export of a variety of commodities for third party customers.’’

NRW shares have been in a trading halt since OneSteel Manufacturing was placed in administration on Wednesday last week, with the company assessing the impact on its half year financial results, which were due to be released around that time.

The company said it was continuing to provide mining services at Whyalla under the direction of administrators KordaMentha, and had confirmation it would be paid for all services carried out since the administration came into effect.


Prime Minister Anthony Albanese speaking to workers at the Whyalla Steelworks.

KordaMentha released a statement on Tuesday clarifying the port was not part of the administration and was fully operational.

“Since our appointment, we have been focused on stabilising the business and ensuring work can continue at all sites,” administrator Mark Mentha said.

“We have re-established relationships across the company’s supply chain, including with rail and utilities providers, to ensure business can continue during the administration

“Whyalla Port, which is not part of the administration, is also fully operational, with boats able to load and unload cargoes from the company.”

Documents sourced from corporate regulator ASIC show Whyalla Ports is owned by Mr Gupta’s company Liberty Steel Group Holdings, which is part of the global group GFG Alliance.

NRW said its half year results will be released this week, and its balance sheet remained strong “with December 31, 2024 cash and cash equivalent balances at a record high of $284.4m which is further supported by available undrawn debt facilities of $330m’’.

KordaMentha will hold the first meeting of creditors for OneSteel Manufacturing in Whyalla on Monday.

The administration, likely sale process and eventual modernisation of the steelworks are being funded by a $2.4bn joint state and federal government support package, with an emergency $50m available for creditors of the steelworks and another $384m on the table to run the operations while they are in administration.