Tag Archives: ferromanganese

GFG Alliance, South32 and Anglo American complete TEMCO transaction

GFG Alliance says it has finalised the purchase of the hydro energy-powered Tasmanian Electro Metallurgical Company (TEMCO) smelter in Bell Bay in northern Tasmania, Australia.

After entering a binding sale and purchase agreement with South32 and Anglo American in August, today’s finalisation sees TEMCO join LIBERTY Steel Group as part of the GFG Alliance family, it said.

The smelter, in Tasmania, Australia, was run by the Samancor Manganese joint venture, owned 60% by South32 and 40% by Anglo American.

GFG Alliance Executive Chairman, Sanjeev Gupta, said the acquisition not only secured the jobs of the smelter’s 250 workers but would also play a key role in enhancing LIBERTY’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, the company said.

“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.”

GFG Alliance to take over TEMCO manganese alloy smelter following South32 pact

South32’s association with the Tasmanian Electro Metallurgical Company (TEMCO) is set to come to an end after it agreed to sell its stake in the manganese alloy smelter to an entity within the GFG Alliance.

The announcement from South32’s Groote Eylandt Mining Company (GEMCO) said completion of the transaction was subject to approval from Australia’s Foreign Investment Review Board. Upon satisfaction of this condition, GFG will make a nominal payment to GEMCO to acquire 100% of the shares in TEMCO, it said, without naming an acquisition price.

As a condition to the completion of the transaction, the parties have entered into an ore supply agreement from GEMCO to TEMCO.

The smelter, in Tasmania, Australia, is run by the Samancor Manganese joint venture, owned 60% by South32 and 40% by Anglo American.

South32 says TEMCO uses ore shipped from its GEMCO operations in the Northern Territory of Australia and produces ferromanganese for steelmaking. Most of the alloy produced is exported to customers in Asia and North America, with the remaining sold to steel producers in Australia and New Zealand.

South32 CEO Graham Kerr said the agreement represented another milestone for South32 as it continues to reshape 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.

“Looking forward, we are confident that GFG, a current TEMCO customer, is well placed to operate the smelter, with the acquisition representing an opportunity to further vertically integrate its steel business.”

The transaction does not include the Samancor Manganese JV’s South African manganese alloy smelter, Metalloys, which has separately been placed under care and maintenance, South32 added.