In the midst of a resources sector bloodbath, Arrium has signed  a deal with the South Australian government to use spare capacity at Arrium's Whyalla port and encourage investment in the state's resources sector.
The hard-pressed South Australian government said on Tuesday  it had signed a memorandum of understanding with the struggling steel and mining group. The two parties would work to "create a major multi-user port at Whyalla" and "generate new investment opportunities in the Upper Spencer Gulf," it said.
South Australian Resources and Energy Minister Tom Koutsantonis said the agreement was a "critical first step" that increased the attractiveness of investing in the region. 
"The state government is committed to ensuring the Spencer Gulf achieves its full potential, as part of our economic priority to unlock the value of our state's resources," he said.
The memorandum of understanding  with Arrium comes amid a wave of pain in the resources sector, wrought by the collapse in key commodity prices.
Resources investment is dropping sharply  in Australia, mining stocks are being hammered by investors, and the International Monetary Fund said this week the commodity slump would  weigh on global economic growth.

Whyalla an opportunity
Whyalla was identified as an opportunity by South Australia's Resources Infrastructure Taskforce (RIT), which on Tuesday published a report on infrastructure for the export of the state's bulk minerals.  
The report highlighted three key regions, Eyre and  Western, Far North, and Yorke  and Mid North, for potential resources projects.
The Iron Road, Centrex Fusion, Centrex Kimba Gap, and Hawsons iron ore projects could possibly use Whyalla's capacity.
In 2015 the RIT began developing a South Australian iron ore strategy to promote the development of iron ore magnetite resources. The strategy is scheduled for completion in 2016.
Arrium has just gone through a  restructure of its South Australian iron ore business to stem cash losses as the price of the steel-making raw material plummeted.
Arrium booked $1.9 billion of write-downs in 2014-15, primarily against its iron ore assets, and shuttered its higher-cost Southern Iron mine, with 500 job losses, in   January.
As a result Arrium's annual iron ore exports dropped from 13 million tonnes to 9 million tonnes, resulting in  excess capacity at Whyalla.

Outer harbour mothballed
The outer harbour at the port, which is wholly owned by Arrium, has been mothballed.
Arrium managing director Andrew Roberts said investment in the Whyalla port was a "key opportunity ... to encourage the development of numerous magnetite deposits that exist in South Australia".
The debt-laden Arrium is  entertaining offers for its mining consumables business, the only division making money, and could use the extra income stream from third-parites using Whyalla.
The only other miner that exported iron ore from South Australia in 2014 was IMX Resources, which  shipped 2 million tonnes of ore through the Port of Adelaide, but it sold its Cairn Hill mine in 2015 and exports have  ceased.
Mr Koutsantonis said the state would  reassess the existing regulations for business in the region.
South Australia's economy is struggling, with weak economic growth and the highest unemployment of any state at 7.9 per cent.
The state Treasury expects the economy to grow by only 2 per cent in 2015-16, after an anaemic 1.75 per cent in 2014-15.
This compares with the national growth rate forecast by former federal Treasurer Joe Hockey of 2.75 per cent for 2015-16.
The state is reeling from the demise of the car industry and the sharp downturn in the resources sector.