Britain’s GFG Alliance continues to build its Australian asset portfolio, with its SIMEC Mining division agreeing to acquire Glencore’s Tahmoor metallurgical coal mine in New South Wales.
The deal adds to GFG Alliance’s acquisition last year of the Arrium Whyalla steelworks and iron ore mines in South Australia.
Glencore launched a sale process for the Tahmoor underground mine in May 2017 after shelving plans to close the operation.
Tahmoor, around 75km south-west of Sydney, produces almost two million tonnes (Mt) a year of metallurgical coal. The mine has a workforce of 340 people.
GFG Alliance executive chairman Sanjeev Gupta said the acquisition was an exciting step forward in the company’s 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.
“Through this purchase we secure and de-risk an important feed for the Whyalla Steelworks,” Gupta said.
“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.”
GFG Alliance expects to complete the transaction in the first quarter of this year. The value of the deal has not yet been revealed.
Glencore last year said the mine had 57Mt of reserves and a 650Mt total resource.