Tasmanian Electro Metallurgical Company plant in Bell Bay under review

UPDATED: There are fears hundreds of jobs are in jeopardy with the parent company of a northern Tasmanian manganese alloy plant reviewing the site’s future.

A worker leaves the Temco plant. Picture: CHRIS KIDD

UPDATE: THERE are fears for up to 300 jobs at the TEMCO manganese alloy plant in northern Tasmania, which will have its future reviewed by its parent company over coming months.

Australian Manufacturing Workers’ Union acting state secretary Jacob Batt said workers at the Bell Bay plant were told on Wednesday about the company-wide review, which will also decide the future of a South African smelter.

“The impact and the flow-on effect, not just for George Town but for Tasmania, would be terrible [if it closed],” Mr Batt said.

The Tasmanian Electro Metallurgical Company produces ferromanganese, used in steel manufacturing, which is sent throughout Australia and exported to New Zealand, Asia and North America.

The future of the TEMCO plant in Bell Bay is uncertain. Picture: CHRIS KIDD

It is understood TEMCO’s West Australian-based owner South32 decided to review its Tasmanian and South African operations because of recent market changes, including increased smelting activity in China and India, which account for 60 per cent of global steel production.

The ageing TEMCO plant also requires significant investment, while the costs of raw materials are expected to increase.

“We have two operations producing manganese alloys — Metalloys in Gauteng, South Africa, and TEMCO in Tasmania, Australia,” a South32 spokesman said.

“Over the next few months, we will undertake an assessment of the options for each operation including divestment, care and maintenance, or closure.

“No final decision has been made on the way forward. We will provide a further update in October.”

Mr Batt said the AMWU was waiting to learn who would be appointed to oversee the review.

Workers and contractors at the plant yesterday declined to comment.

An aerial view of the Tamar Valley, including the Temco and Comalco factories.

EARLIER: THE Northern Tasmanian manganese alloy plant TEMCO is under review, with the parent company set to make a decision on its future within months.

The Tasmanian Electro Metallurgical Company based at Bell Bay produces ferromanganese, used for steel making, which is sent throughout Australia and New Zealand as well as Asia and North America.

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A company spokesman released a short statement today, saying parent company South32 was reviewing options for its manganese alloys smelters.

“We have two operations producing manganese alloys — Metalloys in Gauteng, South Africa, and TEMCO in Tasmania, Australia,” he said.

“Over the next few months, we will undertake an assessment of the options for each operation including divestment, care and maintenance, or closure.

“No final decision has been made on the way forward. We will provide a further update in October.”