The magnetite ore deposits being sold with the Whyalla steelworks are a big draw for Matt Latimore, who says they are in high demand among global steelmakers.

The federal and state governments have reduced the number of bidders for the financially stricken Whyalla steelworks from five to two.

BlueScope Steel can still use its rights to match a final bid, but Matt Latimore’s M Resources and India’s Jindal Steel are the frontrunners for the steelworks.