Mining giant Glencore has agreed to sell its Tahmoor metallurgical coking coal mine in New South Wales to Sanjev Gupta’s GFG Alliance.
SIMEC Mining, a subsidiary of GFG, will acquire the site which is roughly 75km south west of Sydney.
Gupta, Executive Chairman of GFG Alliance said: “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. I very much look forward to welcoming the Tahmoor mine employees and surrounding community into our GFG family.”
The mine has around 340 employees on site and produces around 2mn tonnes a year, the majority being coking coal used in the steel making industry. In particular, Tahmoor is a key supplier to the Whyalla Steelworks.
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.”
The two parties expect the deal to be completed in the first quarter of this year, subject to approvals.