The British Gupta family’s GFG Alliance announced Tuesday that it has signed a binding agreement for Glencore plc’s Tahmoor mine in New South Wales, Australia. The mine produces about 2 million metric tons annually and is a key supplier to the Liberty OneSteel Whyalla Steelworks. 

"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," said GFG Alliance executive chairman Sanjeev Gupta.  

"Through this purchase, we secure and de-risk an important feed for the Whyalla steel works. 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 mine, which employs about 340 people, will become part of the company’s SIMEC Mining unit. 

Jay Hambro, GFG Alliance’s chief investment officer and SIMEC Mining chief executive officer, said the company is acquiring what it believes to be a well-run, high-quality asset. 

"Tahmoor coking coal is well-known and regarded in the domestic and international markets for its grade and quality," he said.

"The Tahmoor operation is another good fit within SIMEC’s global portfolio, allowing vertical integration for the Whyalla steel works and flows to the broader GFG international network."