The state and federal governments announced the $2.4 billion package on February 20, a day after the SA government rushed legislation through parliament allowing it to place the steelworks into the hands of administrators KordaMentha, because of the mounting debts of OneSteel's owners, GFG Alliance.
Delivering an update at a meeting in Whyalla on Wednesday, joint administrator Sebastian Hams said the steelworks was in a state of disrepair and extensive work still needed to be done, but there were "10 to 20 reputable, interested parties" keen to buy the business.
"There's been a material lack of capital expenditure and maintenance and as such the state of dilapidation of equipment exceeded our worst expectations," he said.
KordaMentha will employ up to 100 new people in the mines and steel works, with 63 jobs available now, because the site was understaffed, and Mr Hams praised current staff for their ongoing efforts.
"They're like the old character from the 80s, MacGyver, who'd use chewing gum and sticky tape to keep the business together," he said.
"It's not quite that bad but they're the sort of examples - they're using their own intuition and capital to keep the business going."
The Federal Court last week approved KordaMentha's request for a 12-month extension to convene the next creditors meeting, estimating that it may take "up to 12 months … to restructure, recapitalise or sell OneSteel".
There were "significant occupational health and safety risks" that were being urgently addressed with help from steelmaker BlueScope, which is providing technical and operational support to the administrators.
Mr Hams said that since KordaMentha took control last month, production had increased to 7000 tonnes a day in the south Middleback Ranges mine, compared to about 3500 tonnes a day, and the steelworks' blast furnace was at "optimal capacity", producing about 2800 tonnes a day.
Acting Premier Susan Close said that of the $50 million set aside to pay contractors owed money by the steelworks, $3 million had already been paid out and another $5 million was "well in the process" of being paid.
"We know that this will be a long process, and we know that there will be ups and downs still to come - it will take at least a year for KordaMentha to determine an appropriate buyer."
Sonny Phillis, general manager of Fabcoat Australia, which provides maintenance services to the steelworks, said they had already received $500,000 of the $1 million-plus they were owed.
"It was seamless and quick and helped us retain all of our staff and get over this hurdle," he said.
"It wasn't just the money that wasn't coming in, but the work had stopped," he said.
"Thankfully, now we're starting to see that preventative maintenance work come back, we've got 30 of us out there next week on site."
