New hope for TEMCO smelter workers after company statement

The TEMCO smelter could be saved from closure with “multiple potential buyers” interested in a sale of plant.

The TEMCO smelter at Bell Bay. Picture: CHRIS KIDD

TEMCO smelter workers have a renewed sense of hope their jobs might yet be saved after parent company South32 today announced selling the business was still an option.

Workers had feared the closure of the manganese alloy smelter outside George Town would be announced as South32’s quarterly report was released.

The global mining and metals company instead issued a statement to say it was still reviewing its options and the next update would be announced with the March 2020 quarterly report.

“The review is continuing and includes an assessment of options for each operation including divestment, care and maintenance, or closure,” the statement said.

“We are assessing divestment options for both Metalloys [South Africa] and TEMCO and we have not yet made a decision on the way forward.”

About 300 jobs would be lost if the northern industrial was to close.

WARNING OF HIGHER POWER BILLS IF PLANT CLOSES

TEMCO PLANT IN BELL BAY UNDER REVIEW

Australian Manufacturing Workers’ Union state organiser Jacob Batt said the announcement was positive.

“What we’re hearing is that there’s multiple potential buyers interested and that’s a really good outcome if the sale can get through,” he said.

“A lot of things were up in the air, not just for the workers, but the local community, and with the interest that’s being shown that’s positive.

“People were nervous and waiting to hear what the outcome was going to be.

“While there still isn’t an outcome, the fact that work is being done and that there are interested buyers is a positive step and we hope that the jobs can remain and that we can get a sale through.”

A worker leaves the TEMCO plant. Picture: CHRIS KIDD

Launceston Chamber of Commerce executive officer Neil Grose said he was cautiously optimistic about the announcement.

“They’re considering all options, and one of those options is the potential for a sale,” he said.

“For TEMCO, that would be the best of all options. It’s certainly not guaranteed and I don’t know any of the details, but that’s a far better option than closure or care and maintenance.”

Primary Industries, Energy and Resources Minister Guy Barnett said the Government met with TEMCO recently.

“They reiterated their commitment to keep employees and the local community informed as they work through their review process,” he said.

“Importantly, TEMCO have reaffirmed their intention to provide an update later this year, noting their market announcement obligations.”

Concerns had recently been raised about the impact the closure of the plant would have on Tasmania’s energy sector.

Energy analysts suggested the business case for 10 proposed wind farms might not be viable if the major electricity user closed down, unless a second Bass Straight interconnector was built.

It was also suggested that consumers or utilities would have to absorb TEMCO’s share of electricity and gas infrastructure operation and upkeep costs.

Scott Morrison pledged $56 million to accelerate the delivery of such a cable, dubbed the Marinus Link, earlier this year.