Adani to buy steel from Arrium in Whyalla

AAP
Adani to buy steel from Arrium in Whyalla

Struggling Arrium Steel has been given a lifeline, with a deal to supply $70 million worth of steel for the controversial Adani coal mine project in Queensland.

The giant Indian conglomerate will on Thursday announce it has signed a memorandum of understanding to give Arrium Steel sole right to supply all the steel required for the double-tracked 400km rail line between the central Queensland mine site and the port at Abbot Point, The Australian reported.

The announcement will be made in the South Australian town of Whyalla, where Arrium Steel employs 300 people.

Arrium Steel has been facing closure, with crippling debt and a lack of orders, which threatened the survival of Whyalla.