Jobs safe in smelter sale

GFG Alliance shores up TEMCO future

THE new buyer of the TEMCO manganese alloy smelter at Bell Bay in northern Tasmania says the site’s 250 jobs are assured with the proposed sale.

GFG Alliance confirmed it had entered into a binding sale and purchase agreement with Groote Eylandt Mining Company, an entity owned by global mining and metals company South32.

News of the pending sale came as South32 was reviewing divestment options, casting doubt over jobs at the site.

Subject to relevant approvals, the Tasmanian Electro Metallurgical Company smelter near George Town will join Liberty Steel Group, a part of GFG Alliance, which includes the Whyalla steelworks.

GFG Alliance executive chairman Sanjeev Gupta said the TEMCO facility would be an important addition, which would strengthen its steelmaking capability.

“While living in Australia, I visited Tasmania a number of times and was impressed by its natural beauty, its commitment to renewable energy and the diversity of its industries,’’ he said.

“Most of all I was inspired by the Tasmanian Government’s passion for green industry and underpinned by long-term, sustainable and quality jobs.”

GFG Alliance said the TEMCO facility had four submerged electric arc furnaces, with capacity to produce ferromanganese and silicomanganese, which is used in the production of steel.

South32 chief executive Graham Kerr said the agreement represented another milestone for the company as it reshaped its portfolio.

“Today’s agreement follows an extensive review of options regarding the future of our manganese alloy business,’’ he said. “The transaction and our ongoing supply of ore to TEMCO will see the smelter, first established in 1962, continue to operate into the future.”

Premier Peter Gutwein and State Growth Minister Michael Ferguson welcomed the outcome, saying the smelter played an important role in the state’s economy.

Resources Minister Guy Barnett said the mining and mineral sector was a cornerstone of the Tasmanian economy and provided thousands of jobs, particularly regional.