The Whyalla steelworks, owned by British industrialist Sanjeev Gupta, are still operating as normal despite the collapse of one of Mr Gupta's key financiers.
The 1200 workers at Whyalla, in South Australia's mid-north, have been told it's "business as usual", local state Labor MP Eddie Hughes says.
Mr Hughes, whose son works at the plant, told ABC radio that workers received an email from Mr Gupta assuring them the operations remained in a strong position despite the challenging situation.
"The message is that here in Australia, here in Whyalla, it's business as normal," he said.
"But that's not to downplay the uncertainty. This is a quickly evolving set of circumstances."
A statement from GFG Alliance said the group as a whole was "operationally strong".
It was also believed the steelworkers were now profitable and local suppliers were still being paid.
Concerns for the operations emerged after the Australian arm of financier Greensill Capital, founded by Bundaberg-born businessman Lex Greensill, was placed into administration after being unable to repay a $140m loan to Credit Suisse.
Mr Gupta's group, which bought the Whyalla steelworks and nearby iron ore operations in 2017, is seen as most vulnerable to Greensill's collapse.
The concerns have also prompted South Australian Independent Senator Rex Patrick to call on Prime Minister Scott Morrison to reaffirm the federal government's support for the Whyalla steelworks and Australian domestic steel production.
"Australian steel production is an essential component of our industrial and manufacturing base," Senator Patrick said.
"It is a key part of national infrastructure projects, to shipbuilding and to Australia's national security.
"If the Whyalla steelworks were forced by external financial factors to close, it would be a grave blow to Australia's national self-reliance and resilience."
Whyalla Mayor Clare McLaughlin said the council continued to be reassured by GFG Alliance that its Australian operations, including Whyalla, were performing strongly.
"Returning their local operations to profitability in the past 12 months is a major achievement and a sign of their commitment to our city," she said.
