BlueScope has told NSW Premier Mike Baird what the government could do to help the steelworks stay open.
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The premier met with BlueScope executives in July but a spokesman from his office has declined to detail what was discussed.
"All meetings between the premier and third parties are confidential," the spokesman said.
"The Premier is taking a direct interest in the future of steelmaking in the Illawarra and will continue to be briefed."
But Kiama MP and parliamentary secretary Gareth Ward has confirmed the Port Kembla steelmaker has asked for government assistance.
"I just simply want to make it clear we're doing all that we can," Mr Ward said.
"We're working with BlueScope, they've put a proposal to us which we're working through. They've put some recommendations to the government about what we could do to assist them and we are working through that."
Mr Ward would not provide any details of the proposal as it was "essentially commercial-in-confidence".
In response to further questions from Shellharbour MP Anna Watson about the level of Illawarra and Australian steel used in the Gerringong and Berry stages of the Princes Highway upgrade, Mr Ward reiterated that it was above the South Coast Labour Council's 50 per cent minimum.
"In the case of the Foxground project and the Gerringong project, two of the biggest infrastructure projects the state government is funding in the region, we've exceeded the union's target," Mr Ward said.
"Fifty-four per cent Australian steel is in Berry and 62 per cent in Gerringong.
"We have procurement policies which encourage buying products from NSW and also from Australia. We want to encourage that and we continue to do that and I continue to advocate for it."
A Roads and Maritime Services spokesman added that although the supply of materials is a commercial decision made by contractors, it encouraged them to source materials locally.