GFG Alliance has finalised the purchase of the hydro energy-powered Tasmanian Electro Metallurgical Company (TEMCO) smelter in Bell Bay in northern Tasmania, a notable step forward in its pursuit to be self-sufficient in the supply chain.
After entering a binding sale and purchase agreement with South32 Limited and Anglo American Plc in August, yesterday’s finalisation sees TEMCO join LIBERTY Steel Group as part of the GFG Alliance family.
GFG Alliance Executive Chairman, Sanjeev Gupta, said the acquisition not only secured the jobs of the smelter’s 250 workers but would also play a key role in enhancing LIBERTY’s drive to be self-sufficient in the supply chain.
“When we entered into the agreement in August, I flagged that our investment in key inputs such as ferromanganese and silicomanganese would generate supply chain value to ensure a sustainable and globally competitive steel manufacturing sector,” Mr Gupta said.
“This acquisition is an upstream integration for Whyalla and all our steel plants globally.”
“The Bell Bay precinct and nearby George Town is a long-standing industrial community with a proud heritage, and we are committed to seeing this facility continue to play an important role in the future of the Australian steel industry.”
The TEMCO facility, which is powered by Hydro Tasmania, has four submerged arc furnaces, including a sinter plant, and has the capacity to produce approximately 150 kilotonnes per annum (ktpa) of high carbon ferromanganese and 120ktpa of silicomanganese used in the production of steel.
“GFG Alliance already produces the lowest carbon aluminium in the world in both the UK and France and I’m proud to add one of the world’s greenest Ferro alloy producers to our portfolio,” Mr Gupta said.
“Our goal is to be carbon neutral by 2030 and I am proud to invest in a state like Tasmania, which has a plentiful supply of renewable energy resources.”
The news was welcomed by the Tasmanian Government.
Premier Peter Gutwein said TEMCO’s Bell Bay manganese alloy smelter plays an important role in the State’s economy, especially in Northern Tasmania.
“As a major regional employer, the securing of the ongoing operation of the smelter and the site’s 250 jobs is welcome news, not only by TEMCO employees and their families, but also by the broader community,” Premier Gutwein said.
“As we recover and rebuild from the pandemic, it is crucial business confidence remains strong to secure ongoing investment in Tasmanian industry and jobs, and this announcement will support that.”
Minister for State Growth, Michael Ferguson, added that the State Government worked hard to bring GFG to Tasmania to introduce a range of potential investment opportunities, including TEMCO. He noted that the Coordinator General’s team played a strong role on behalf of the Tasmanian Liberal Government.
“We’re pleased GFG’s detailed due diligence has provided it with the confidence to invest in Tasmania, and we look forward to TEMCO continuing to employ a significant number of Tasmanians,” Minister Ferguson said.
“Importantly, the smelter will become a key component of the group’s steelmaking capability in Australia and globally. This is fantastic for the long term and a credit to the GFG Alliance for having this vision and making this commitment to local employment.”
*Above image credit: GFG Alliance.
