Sanjeev Gupta’s GFG Alliance announced today that its SIMEC Mining division had signed a binding agreement to acquire Glencore’s high-quality Tahmoor metallurgical coking coal mine in New South Wales.
The acquisition of the Tahmoor mine by the British Gupta family is a key element in the GFG Alliance’s transformation plan for its flagship Liberty OneSteel Whyalla Steelworks in South Australia that is designed to optimise and expand production, thereby securing its long term sustainability.
The Tahmoor mine, which has a workforce of 340, is a coking coal mining operation situated around 75km south west of Sydney. Annual production is currently around 2m tonnes per annum, the bulk of which is high-quality coking coal used for primary steel making in blast furnaces both in Australia and internationally.The Tahmoor mine is an important supplier of coking coal to the Whyalla Steelworks.
Commenting on the acquisition, Sanjeev Gupta, Executive Chairman of GFG Alliance said: “The acquisition of the Tahmoor mine is an exciting step forward in our stated strategy to create fully-integrated, end-to-end businesses in Australia, from raw materials and energy right through to high-value finished products ready for market. I very much look forward to welcoming the Tahmoor mine employees and surrounding community into our GFG family.”
“Through this purchase we secure and de-risk an important feed for the Whyalla Steelworks. This, together with our iron ore mines in South Australia, now makes GFG the only fully-integrated Australian steel producer, whether from iron ore and coking coal to primary steel, or from scrap metal and renewable energy to GREENSTEEL.”
Jay Hambro, GFG Alliance’s Chief Investment Officer and CEO SIMEC Mining added: “We believe Tahmoor is a high-value asset with an operation that has been well run and maintained by Glencore. Tahmoor coking coal is well known and regarded in the domestic and international markets for its grade and quality.
“The Tahmoor operation is another good fit within SIMEC’s global portfolio allowing vertical integration for the Whyalla Steelworks and flows to the broader GFG international network.”
Completion of the transaction is subject to customary conditions and is expected to occur in the first quarter of 2018.