Iron ore win for Whyalla
SANJEEV Gupta’s SIMEC Mining has received approval for two new iron ore mines that will feed the Whyalla steelworks and boost exports from the region.
This follows a strong year of purchases and commitments from Mr Gupta, including the acquisition of the beleaguered Arrium steelworks in 2017.
SIMEC Mining, a division of GFG Alliance, secured approval in January to develop the Iron Sultan lease, which will provide 600,000 tonnes of ‘cheap’ iron ore to the steelworks, and the Iron Warrior mine, capable of exporting up to 1.5 million tonnes of iron ore per annum.
“Iron Sultan will play a significant role in reducing the costs of steelmaking at Whyalla steelworks, while Iron Warrior continues South Australia’s role as a reliable iron ore exporter,” South Australian mining minister Tom Koutsantonis said.
“Approval of these two mines demonstrates the commitment of the new owner to develop its South Australian iron ore assets and create a more sustainable steelmaking business.”
SIMEC acquired both Middleback Range mining leases as part of GFG Alliance’s acquisition of Arrium in August 2017.
The mines, 35km west of Whyalla, are expected to create 56 direct jobs and a further 130 contractor positions.
Earlier in the month, GFG Alliance also agreed to purchase Glencore’s high-quality Tahmoor metallurgical coking coal mine in NSW.
“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,” Mr Gupta said.
“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.”
“Iron Sultan will play a significant role in reducing the costs of steelmaking at Whyalla steelworks, while Iron Warrior continues South Australia’s role as a reliable iron ore exporter.”