OZ Minerals looks to Whyalla investment

Mining company OZ Minerals is considering a "substantial investment" in Whyalla to help support the ongoing viability of the town's steelworks, Premier Jay Weatherill says.

Mr Weatherill met with steelmaker Arrium's administrators, KordaMentha, in the Eyre Peninsula town on Tuesday, and said more details of the plan with the mining group would be announced in coming days.

"Discussions are in an advanced state between OZ Minerals and the administrators for a substantial investment here in Whyalla, which will create many jobs and also support the ongoing viability of the steelworks," he told reporters.

Mr Weatherill also announced the establishment of a one-stop-shop in Whyalla to help struggling businesses and families.

"It is important that the people of Whyalla understand that this is a very broad set of measures which don't just involve deals with companies," he said.

KordaMentha told Mr Weatherill that Arrium's steelworks and mine had become more productive since the company went into voluntary administration last month.

"Workers, it's fair to say, are angry at the way in which Arrium has been managed in recent years," the premier said.

"They have made suggestions about improving the efficiency of this company that have fallen on deaf ears.

"They are now pleased to see that the administrator is acting on those suggestions."

A former employee last week said Arrium was rife with duplication and waste.

The man, who was made redundant from an engineering role earlier this year and didn't want to be named, said he'd suggested various cost-saving measures to Arrium and KordaMentha but they hadn't been acted on.

In a series of emails seen by AAP, he said the steelworks used fly-in, fly-out contractors instead of local employees and had too many managers and support staff.

The South Australian government is yet to detail what direct support it might offer but Mr Weatherill said the steelworks would fail without state and commonwealth investment.

"Whyalla steel has literally built this nation," he said.

"Every house that's built in this nation, about a ton of steel goes into it and about 75-80 per cent of the steel is made here in Whyalla."

The South Australian opposition said Premier Weatherill had left the people of Whyalla waiting again after his visit on Tuesday.

"For 10 months the government has been telling the people of Whyalla that it is working on a solution to Arrium's problems, but has still not delivered any positive information regarding the survival of the troubled steelworks," opposition regional development spokesman Dan van Holst Pellekaan said.