Anglo American and South32 have finalised the sale of the Tasmanian Electro Metallurgical Company (TEMCO) smelter to GFG Alliance.
TEMCO is powered by renewable energy through Hydro Tasmania, with GFG aiming to continue using the facility as part of Australia’s steel industry.
The purchase of TEMCO marks a milestone for GFG Alliance in becoming self-sufficient in its supply chain, with TEMCO joining GFG subsidiary Liberty Steel Group.
GFG Alliance executive chairman Sanjeev Gupta said the sale secured the jobs of 250 workers at the smelter.
“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,” he said.
According to Gupta, the purchase strengthened GFG Alliance’s stance in the steel manufacturing sector.
“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,” he said.
“This acquisition is an upstream integration for Whyalla and all our steel plants globally.”
TEMCO has four submerged arc furnaces with a capacity to produce 150,000 tonnes per annum of high carbon ferromanganese and 120,000 tonnes per annum of silicomaganese.