Purchaser of TEMCO smelter at Bell Bay says the site’s 250 jobs will be saved

An agreement has been struck for the sale of the TEMCO smelter at Bell Bay, with the purchaser providing an update on what it will mean for the site’s jobs >>

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THE new buyer of the TEMCO smelter at Bell Bay in northern Tasmania says the site’s 250 jobs are assured with the proposed sale.

GFG Alliance confirmed it had entered into a binding sale and purchase agreement with Groote Eylandt Mining Company, an entity owned by global mining and metals company South32.

Subject to relevant approvals, the Tasmanian Electro Metallurgical Company smelter at George Town will join Liberty Steel Group, which is part of GFG Alliance, which includes the Whyalla steelworks, SIMEC Mining, and InfraBuild in Australia.

GFG Alliance said TEMCO had four submerged electric arc furnaces, which had capacity to produce high carbon ferromanganese and silicomanganese which is used in production of steel.

GFG Alliance executive chairman Sanjeev Gupta said the TEMCO facility would be an important addition that would strengthen its steel making capability in Australia and globally.

“By embracing Tasmania’s plentiful supply of renewable energy, particularly the ability to power the submerged arc furnaces from Hydro Tasmania, the TEMCO facility will support our goal to be carbon neutral by 2030,’’ he said.

“While living in Australia, I visited Tasmania a number of times and was impressed by its natural beauty, it’s commitment to renewable energy and the diversity of its industries.

“Most of all I was inspired by the Tasmanian Government’s passion for green industry and underpinned by long-term, sustainable and quality jobs.”

Temco at Bell Bay. PICTURE CHRIS KIDD

News of the pending sale comes after South32 had been reviewing divestment options, casting doubt over hundreds of jobs.

South32 chief executive Graham Kerr said the agreement represented another milestone for the company as it reshaped its portfolio.

“Today’s agreement follows an extensive review of options regarding the future of our manganese alloy business,’’ he said.

“The transaction and our ongoing supply of ore to TEMCO will see the smelter, first established in 1962, continue to operate into the future.

“TECMO has a proud history of being a significant contributor to the local economy and we’re pleased to have achieved what we believe is a positive outcome for our people, the local community and Tasmania.”

The agreement remains subject to regulatory approval.

Premier Peter Gutwein welcomed the outcome, saying the smelter played an important role in the state’s economy.

“As a major regional employer, the securing of the ongoing operation of the smelter and the site’s 250 jobs, will be very welcomed by TEMCO employees and the broader community,” he said.

“As we build ourselves out of the COVID-19 pandemic, it is crucial business confidence remains strong to secure ongoing investment in Tasmanian industry and jobs, and today’s announcement will support that.”

Premier Peter Gutwein. Picture: RICHARD JUPE

State Growth Minister Michael Ferguson said the government, through the Co-ordinator-General, worked hard last year to bring GFG to Tasmania to introduce a range of potential investment opportunities, including TEMCO.

Energy and Resources Minister Guy Barnett said TEMCO would become a key component of the group’s steel making capability in Australia and globally.

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Originally published as Purchaser of TEMCO smelter at Bell Bay says the site’s 250 jobs will be saved