PERTH (miningweekly.com) - Sanjeev Gupta’s GFG Alliance has completed the purchase of the hydro energy-powered Tasmanian Electro Metallurgical Company (Temco) smelter in Tasmania, from diversified miners South32 and Anglo American.

Gupta said this week that the acquisition not only secured the jobs of the smelter’s 250 workers but would also play a key role in enhancing subsidiary LIBERTY Steel Group’s drive to be self-sufficient in the supply chain.

“When we entered into the agreement in August, I flagged that our investment in key inputs such as ferromanganese and silicomanganese would generate supply chain value to ensure a sustainable and globally competitive steel manufacturing sector,” Gupta said.

“This acquisition is an upstream integration for Whyalla and all our steel plants globally.

“The Bell Bay precinct and nearby George Town is a long-standing industrial community with a proud heritage, and we are committed to seeing this facility continue to play an important role in the future of the Australian steel industry.”

The Temco facility, which is powered by Hydro Tasmania, has four submerged arc furnaces, including a sinter plant, and has the capacity to produce around 150 000 t/y of high carbon ferromanganese and 120 000 t/y of silicomanganese used in the production of steel.

“GFG Alliance already produces the lowest carbon aluminium in the world in both the UK and France and I’m proud to add one of the world’s greenest Ferro alloy producers to our portfolio,” Gupta said.

“Our goal is to be carbon neutral by 2030 and I am proud to invest in a state like Tasmania, which has a plentiful supply of renewable energy resources.”

Tasmanian Premier Peter Gutwein has welcomed the finalisation of the sales process, saying it would not only secure the jobs of the 250 staff at the smelter, but also sent a clear vote of confidence for investment in the state.

“Tasmania has what the world wants in clean, renewable energy and the purchase of the site will help GFG Alliance achieve their goal to be carbon-neutral by 2030.

“With Tasmania now 100% self-sufficient in renewable energy, it will also help us reach our target to double our renewable generation to 200% of our current needs by 2040.

“Our ability to produce clean, green energy in spades sets us apart from the rest of the world and is giving businesses the confidence they need to invest in our state,” said Gutwein.