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The preferred bidder for the Whyalla steelworks is a South Korean consortium led by Newlake Alliance Management and JB Asset Management.
Newlake is a private equity firm with its headquarters in Seoul, and JB Asset Management is an investment firm with a focus on energy and resources.
The consortium plans to licence technology from South Korean steel giant POSCO to use at the Whyalla steelworks.
Does this deal mean the future of Whyalla is secure?
A sale contract still needs to be finalised and the bid is subject to approval by Arrium's committee of creditors and the Foreign Investment Review Board.
SA Treasurer Tom Koutsantonis said it was too early to celebrate but he was quietly confident the deal would go through.
Newlake Alliance Management and JB Asset Management have not commented about their intentions for the Whyalla steelworks, but Mr Koutsantonis said he had been given an assurance there would be no job losses.
The value of the deal is unknown.
Arrium has about 1,600 workers in South Australia.
It was placed into voluntary administration in April last year with debts of more than $4 billion.
What is steelmaking giant POSCO's involvement in the deal?
POSCO has developed a steelmaking technology known as Finex, which replaces the use of conventional blast furnaces. It calls the process "eco-friendly".
The preferred consortium plans to use the technology under a licencing deal.
POSCO said a Finex plant would have lower operating costs and emissions than using a blast furnace.
Molten iron is produced directly using iron ore fines and non-coking coal rather than processing through sintering and coke making.
Gas is a by-product of the process, which Mr Koutsantonis said would feed a proposed electricity plant to generate power, including to the state grid.
What are POSCO's historic links to the Whyalla steelworks?
Mr Koutsantonis said Whyalla was used as a model for South Korea's first steelmaking plant almost 50 years ago.
He said that when the South Korean Government set up its industry, it approached Whyalla to learn about steelmaking. The evolution has now come full circle.
POSCO and a commodities trading company made an unsuccessful $1.2 billion takeover bid for Arrium in 2012.
The offer of 88 cents per share was knocked back by Arrium's board, which said it significantly undervalued the company.
When Arrium went into voluntary administration last year its shares were trading at about 2 cents.
Topics: steel, industry, sa, whyalla-5600, adelaide-5000, korea-republic-of