The Australian Government has been scrambling to provide finances for BlueScope Steel after the company was forced to sack 1,000 workers as it begins to shut down its steel exporting sector.

The company has reported a loss believed to be in the region of $1 billion (£630 million), with the axing of the 1,000 workers confirmed on Monday morning. It is a huge blow for the metal industry in the company and will see the nation with one of the largest deposits of coal and iron ore all but lose its steel industry.

BlueScope chairman Graham Kraehe said in a statement “We are experiencing significant economic challenges and structural change in the global steel industry,.”

National secretary of the Australian Workers’ Union, Paul Howes, blamed the double shot of a weakening Australian dollar and the Australian mining companies for the collapse. He said “This announcement is principally because of the dollar.

“It’s not going to improve in the short term unless we have substantial changes regarding the way that we promote domestic consumption.

“There is very little the Australian government can do to control the dollar.”