GFG Alliance’s SIMEC Mining division had reached an agreement to purchase Glencore’s high-quality Tahmoor metallurgical coking coal mine in NSW.
Located some 75km south west of Sydney, the Tahmoor mine currently produces 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 mine is an important supplier of coking coal to the Whyalla Steelworks, which was recently acquired by GFG Alliance.
UK tycoon Sanjeev Gupta, the owner of GFG Alliance, said the acquisition of the Tahmoor mine 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.
“I very much look forward to welcoming the Tahmoor mine employees and surrounding community into our GFG family,” Mr Gupta added.
“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.”
GFG Alliance’s Chief Investment Officer and CEO SIMEC Mining, Jay Hambro, said the Tahmoor operation was another ‘good fit’ within SIMEC’s global portfolio, allowing vertical integration for the Whyalla Steelworks and flows to the broader GFG international network.
“We believe Tahmoor is a high-value asset with an operation that has been well run and maintained by Glencore,” he continued.
“Tahmoor coking coal is well known and regarded in the domestic and international markets for its grade and quality.”
The transaction, subject to customary conditions, is expected to be completed in the first quarter of 2018.
