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.
For further information please contact:
Namrata Kundu: +91 9873438980 Namrata.email@example.com
Eoghan Mortell: +44 7977 555 116 Eoghan.Mortell@libertyhg.com
Francis de Rosa +61 417074751. Francis.de.Rosa@glencore.com
Notes to Editors
The GFG Alliance is a global group of energy, mining, metals, engineering and financial services businesses, headquartered in London, with additional hubs in Dubai, Hong Kong, Singapore and Sydney and a presence in around 30 countries worldwide. The Alliance, which has a global workforce of over 12,000 people, with a turnover exceeding US$10 billion, comprises integrated industrials and metals businesses under the “Liberty” banner; a mining, resources, energy and infrastructure group under “SIMEC”; Wyelands; a banking and financial services arm; JAHAMA Estates – a division that manages the Alliance’s global property development; and the GFG Foundation which works to build industrial skills. www.gfgalliance.com
Glencore coal business in Australia
Glencore is one of Australia’s largest coal producers with 13 mining complexes – including 17 operational mines – across New South Wales and Queensland. They employ 7,500 Australians and in 2016 managed the production of nearly 93 million tonnes of thermal and coking coal, predominantly for export. It has a strong safety and environmental performance and plays an active role in the development of low- emission coal technology. www.glencore.com.au