GFG Alliance has announced it has secured a $150 million loan to support its Whyalla steelworks and mining operations — and will use the money to help pay its suppliers and fund efforts to fix its blast furnace.

The metal conglomerate says the funding round is expected to be completed by the end of the year and adds to the $400 million it has directed to the steelworks in the last two years.

GFG's executive chairman Sanjeev Gupta said his "commitment to Whyalla and our transition to green iron and steel remains resolute".

"Our new round of funding reaffirms my faith in Whyalla and our Back to Black plan, which aims to restore sustainable profitability and support the future of steel and mining operations in the region," he said.

The announcement comes as major suppliers to GFG's steel and mining operations suspend their services over unpaid debts.

Rail operators Pacific National and Aurizon halted their services with GFG earlier this month — limiting the company's ability to distribute its steel products from the steelworks and transport iron ore from its mines at the Middleback ranges to the Whyalla port for export.

Local MP Eddie Hughes believes mining contractor Goldings and shipping company CSL have also recently "downed tools" over disputes with GFG.

"We do need to get those companies back online with some sort of schedule of payments, and if the finance that's been raised moves us in that direction, well, that's a good thing," he said.

ABC News has reached out to Goldings and CSL Shipping for comment.

Last month, GFG replaced Whyalla steelworks managing director Tony Swiericzuk with industry veteran Theuns Victor as it tries to stabilise operations at the plant.

In a letter to staff, Mr Victor said "The reality is we are losing approximately $1 million a day" as he outlined his vision to restart the blast furnace and ramp up production.

The coal-fired furnace was offline for about four months earlier this year after it cooled too much following planned maintenance.

It has then remained offline again since it was shutdown in August as the plant ran out of coking coal.

Mr Hughes said, in recent days, workers have made important progress in the arduous task of fixing it.

"They've got 10 tuyeres [which deliver hot air into the furnace] operating, so that's good, we need a minimum of 12.

"I am told by people on the ground that the iron that is being produced at the moment, the silica content is too high, so that will need to be addressed, but that is all manageable.

"So, it looks like we're getting some steady progress on getting the blast furnace back online," he said.

Mr Hughes said GFG's funding announcement is a "step forward" but he wants to see the terms of the loan arrangement.

"I don't know what the circumstances are surrounding the nature of the finance, the interest rates due on the finance.

"But we do need to get those major contractors back at work so at least we have a degree of certainty for the workforce at the Whyalla steelworks, and especially at the mines," he said.