Australian-owned enterprise M Resources and Indian company Jindal Steel were the final bidders on the shortlist for South Australia's Whyalla, it was announced on Wednesday.
The two bidders were short-listed from an initial 70 expressions of interest as part of the multibillion-dollar process, although an Australian-led BlueScope Steel consortium still retains the right of last offer.
A $2.4 billion sovereign steel package was announced in 2025, after the SA 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, SA Premier Peter Malinauskas said.
The ageing steelworks' blast furnace has been offline since April, and Mr Malinauskas acknowledged he was "very concerned" about the shutdown and said 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.
When asked if Bluescope retained the right of last offer and whether that meant there were three bidders still in the race, Mr Malinauskas said that was up to BlueScope.
"Time will tell how that plays out," he told ABC Radio.
The SA government remained engaged with BlueScope, he said, noting their right of last offer is only executed if the offer equals or is better than the other two propositions on the table.
The successful bidder is expected to be announced within months.
The SA and federal governments continue to provide funding of administration costs at the facility to ensure safe operations are maintained and to pay wages and suppliers.
In a separate Wednesday announcement, a preferred bidder was announced for Liberty Bell Bay in northern Tasmania, the nation's only manganese smelter.
The smelter, which employs around 200 people, has been idle for more than 12 months and was put into administration in March.
A consortium headed by Australia's Adroit Capital was the preferred bidder and would enter into exclusive negotiations with the smelter's administrator, the federal government said.
An additional $5 million in Tasmanian and federal government funding is being supplied over the next two months to continue paying employee wages.
Both Whyalla and Liberty Bell Bay were owned by Mr Gupta's GFG Alliance, which collapsed under a massive debt burden.
Workers at Liberty Bell Bay, whose jobs have been under a cloud since mid-2025, had been let down by GFG Alliance, Federal Industry Minister Tim Ayres said.
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