Far from cutting his exposure to the Australian steel industry, British businessman Sanjeev Gupta has reinforced its viability, buying the Bell Bay manganese smelter from South 32.
According to a statement from miner South32, the company will divest its ownership of the Tasmanian Electro metallurgical Company (TEMCO) in Tasmania’s north to an entity within Gupta’s GFG Alliance.
The sale, for a nominal fee, will also see South32 subsidiary Groote Eylandt Company continue to supply TEMCO with ore.
South32 chief executive Graham Kerr said the agreement was another milestone as his company continues to reshape its portfolio.
Kerr said: “Today’s agreement follows an extensive review of options regarding the future of our manganese alloy business.
“The transaction and our ongoing supply of ore to TEMCO will see the smelter, first established in 1962, continue to operate into the future.”
TEMCO will join part of the alliance’s Liberty Steel Group, supplying it with manganese alloys for use in steelmaking.
Gupta told ABC the facility would strengthen its steel-making capability in Australia and around the world.
Gupta said: “This acquisition will further enhance Liberty’s drive to be self-sufficient and fully integrated across the supply chain, complementing our iron ore production in Whyalla, coking coal in Tahmoor and our Cultana Solar Farm to be built in Whyalla.”
He said the acquisition would also support his goal to be carbon neutral by 2030.
Picture: South32/Bell Bay
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