Global mining and metals company South32 has extended its review of options for its TEMCO smelter

A decision on the possible sale or closure of a northern Tasmanian smelter has been delayed.

Temco in Bell Bay in Tasmania's north.

THERE is still hope 300 jobs at northern Tasmania’s TEMCO manganese alloy smelter in Bell Bay can be saved after its parent company extended its review of divestment options.

Global mining and metals company South32 has been assessing whether sale, closure or care and maintenance is the most viable option for TEMCO.

An update on the review process was expected with the release of South32’s March quarterly report to be released this month, but the company will instead continue its review into the June quarter.

NEW HOPE FOR SMELTER WORKERS AFTER COMPANY STATEMENT

A South32 spokesperson on Wednesday told the Mercury the company was engaging its employees, governments and all other stakeholders in the review process.

Australian Manufacturing Workers’ Union state organiser Jacob Batt said the extension of the review was positive and gave workers hope that a sale could be achieved.

“TEMCO is continuing to operate and the review will continue into the second quarter of 2020 as they continue speaking with potential buyers and divestment options,” he said.

“This means that there is hope moving forward.

“It means that the review stays in place and we are hoping for a positive outcome as one of the options still is selling and that means that there still is potential buyers.”

Workers leave the TEMCO manganese smelter at Bell Bay. Their futures at the plant are uncertain.

Mr Batt said the union was aware of potential buyers that had shown interest.

Workers had feared the closure of the smelter outside George Town would be announced late last year.

However the company revealed in a statement in October that its options were still being reviewed.

South32 has also being assessing divestment options for its Metalloys site in South Africa.

That plant was forced into care and maintenance last week after a nationwide lockdown aimed at containing the spread of COVID-19 commenced in South Africa.

South32 CEO Graham Kerr said Hillside Aluminium and South Africa Energy Coal [domestic production] would continue to operate during the lockdown because of their importance to the sustainability of South Africa’s national power network.

Operations have continued at TEMCO with a number of social distancing measures implemented in line with Government restrictions.

South32’s quarterly report will still be released at the end of April and the next update will come in June.