I have seen many failed bearings and bearing housings in turbines with this basic bearing arrangement. But, I have never seen one fail at that location. This turbine should produce very little thrust. Something very bad happened to this little turbine. There should not be much load on that shoulder. I would not consider it acceptable to weld a cast iron housing of this sort. You would have a high chance of distorting the housing and causing other problems. Metal stitching could be done. But, it would cost more than a new housing and we would still not consider it a permanent repair. So, as noted above, the best option is to purchase a new housing.
If you have urgent need and cannot afford the downtime to wait for the new housing, you have a few options. As already noted, you can metal stitch. I would prefer a fabricated solution. I would have our machinist cut out the affected area. He would make a bolt-in insert which could be machined in place back to the original dimensions. This would restore the critical fit of the thrust bearing within the housing and would probably be stronger than the original cast iron pocket. Depending on the final design, I might consider this a permanent repair. But, I would most likely order a new housing anyway.
Johnny Pellin