Source : BUSINESS NEWS
Mining services contractor NRW Holdings has expressed concern surrounding proposed legislation by the South Australian government, in relation to the recent collapse of the Whyalla steelworks.
Emerging from a trading halt on Thursday morning, Jules Pemberton-led NRW said it believes the proposed changes by the South Australian government to streamline and fast-track the sale of the facility could potentially impact its chances of recovering around $113.3 million owed to its wholly owned subsidiary, Golding Contractors.
“If the proposed bill is passed by the South Australian parliament in the form described in the ministerial statement, NRW is concerned that any recovery of the outstanding indebtedness via Golding’s first-ranking security in respect of Whyalla Ports assets will be seriously impaired,” the company said.
“In this event, and in line with the relevant accounting standards, NRW will take a prudent position and raise an impairment provision for the amount of $113.3 million as a nonrecurring item in our financial results for the period ending June 30, 2025.”
Under the proposed legislation, Business News understands new laws could mean that certain infrastructure would form part of the land and would not be deemed personal property.
“As at 14 May 2025, Golding retains first ranking security interest over the assets of Whyalla Ports as personal property,” NRW said.
“The ministerial statement makes it clear the proposed Bill will enable OneSteel to usurp that personal property by declaring it void and part of the land, with ownership vesting to OneSteel without any mention of compensation to Whyalla Ports.
“NRW is extremely disappointed and concerned that the proposed and unprecedented intervention by the South Australian government will seriously impair and undermine Golding’s security over Whyalla Ports.
“Further, the South Australian government’s sudden intervention will in effect determine certain issues that are before the federal court for determination at a trial due to commence in less than three weeks’ time.”
During the release of its half-year results in late February, NRW said it had made no provisions on debt recovery in relation to the facility going into administration. Despite this, it posted a first half net profit of $58.4 million.
NRW shares were down 8 per cent to $2.67 as of 8.59am AWST.
