OneSteel said that no deadline has been set regarding the future of its Whyalla steelworks.

A media report quoted OneSteel as saying its steel manufacturing operation had been given 12 months to reverse its fortunes or face closure.

But Mr Geoff Plummer MD of OneSteel said that there has been no ultimatum.

Mr Plummer said that the company is committed to lifting the return of its steel business in the short term after it recorded an underlying loss of AUD 185 million last financial year.

He added that "We are looking at all of our products and facilities to address the very poor results we had last year."

He said that "There will be changes made at Whyalla over the coming period just as there will be changes made at many of our steel operations over the coming period but it wasn't correct to say that I'd given a deadline for a closure decision."

Manufacturing minister Mr Tom Koutsantonis said that the large royalty discounts the company receives on its ore would evaporate overnight if the plant was to close. He added that "They have a massive competitive advantage over their competitors in Australia because their iron ore is so much cheaper and we give them that for the long term viability of Whyalla."

(Sourced from www.abc.net.au)