Whyalla steelworks owner GFG Alliance has bought a struggling smelter in Tasmania
Sanjeev Gupta’s GFG Alliance has bought a struggling Tasmanian smelter, saving 250 jobs and extending its Australian reach.
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Whyalla steelworks owner GFG Alliance has bought a hydro-powered Tasmanian manganese smelter, just days after restructuring its South Australian renewable energy business.
The company headed by British industrialist Sanjeev Gupta has bought the TEMCO smelter at Bell Bay, Tasmania, reportedly for a nominal sum.
The purchase will secure 250 jobs at the smelter, which had been rumoured to close earlier this year.
Mr Gupta bought the Whyalla steelworks and associated iron ore mines in 2017 and has a global vision to become a carbon neutral steelmaker by 23030.
As part of this vision, construction of a large solar farm at Cultana outside Whyalla is imminent, while there are future plans for a “direct reduced iron facility” to produce iron from gas and later hydrogen at Whyalla, as well as an electric arc furnace to replace the existing blast furnace.
These will sit alongside a $600 million steel rolling mill, which is now expected to start construction later this year.
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TEMCO has the capacity to produce around 150,000 tonnes per year of high carbon ferromanganese and 120,000 tonnes of silicomanganese, which is used in the
production of steel.
Mr Gupta said the purchase fit well within the company’s Liberty Steel Group.
“This acquisition will further enhance Liberty’s drive to be self-sufficient and fully integrated across the supply chain, complementing our iron ore production in Whyalla, coking coal in Tahmoor and our Cultana Solar Farm to be built in Whyalla,’’ he said.
“By investing in key inputs, such as ferromanganese and silicomanganese we are able to generate value across the supply chain to ensure Australia has a sustainable and globally competitive steel manufacturing sector.
“It will also help neutralise the volatility in the markets, providing us a reliable supply at a stable cost.’’
Earlier this week GFG announced it had demerged its renewable energy business from Zen Energy, which it bought a majority stake in three years ago.
GFG’s SIMEC Energy Australia will focus on delivering projects related to the Whyalla steelworks while Zen will focus on retail, residential and industrial customers.
The TEMCO smelter was previously owned by South32 and Anglo American.
