OneSteel is to receive a $A64 million advance of federal assistance from the Australian government.
The company has been promised $A300 million over four years as part of money to help the steel industry deal with the introduction of a carbon tax.
The federal government says the advance is important for the continued viability of the company's blast furnace at Whyalla.
The ABC reports OneSteel will use the funds to support its waste reduction and recycling efforts. There will also be new training for some of its workforce.
Industry Minister Greg Combet says OneSteel is facing challenges from a high Australian dollar, weak domestic demand for steel and problems on international steel markets.