South Australian Premier Peter Malinauskas announced on Wednesday that Australian-owned enterprise M Resources and Indian company Jindal Steel were the final bidders on the shortlist, from an initial 70 expressions of interest.
A $2.4 billion sovereign steel package was announced in 2025, after the state government placed the steelworks into the hands of administrators because of the mounting debts of ultimate owner GFG Alliance.
The two ''high quality'' bidders were well-resourced and well-positioned to deliver a long-term, modern, low-emission sovereign steelmaking business, the premier said, adding that a BlueScope Steel-led consortium retains the right of final offer.
The ageing steelworks' blast furnace has been offline since April, and Mr Malinauskas acknowledged that he was "very concerned" about the shutdown and recognised the massive transition would not occur without some pain.
The furnace, commissioned in the 1960s, has had repeated shutdowns in recent years and undergone unscheduled maintenance.
M Resources is working on its bid with ASX-listed Hazer Group, which is developing technology to produce low-emissions hydrogen and graphite from natural gas.
New Delhi-based Jindal Steel is the third-largest private steel producer in India.
BlueScope Steel, which has been advising steelworks administrators KordaMentha since March 2025, headed a consortium of Nippon Steel (Japan), JSW (India) and POSCO (South Korea).
It was among the final five bidders and Mr Malinauskas, when asked if it retained the right of last offer and whether that meant there were three still in the race, said that was up to BlueScope now.
"Time will tell how that plays out," he told ABC Radio.
"We do still remain engaged with BlueScope should they wish to exercise their right of last offer, but of course that offer only gets executed if that offer is as good as, or better than the other two propositions on the table."
The successful bidder is expected to be announced within months.
The state and federal governments continue to provide joint funding of administration costs at the facility, to ensure administrators can maintain safe operations, pay wages and suppliers, and undertake critical works to improve the steelworks' sale prospects.
