TEMCO agreement welcomed

Peter Gutwein,Premier

Michael Ferguson,Minister for State Growth

Guy Barnett,Minister for Resources

The Tasmanian Liberal Government welcomes the announcement by South 32 Limited (South 32) that Groote Eylandt Mining Company (GEMCO) has entered into a binding agreement for the sale of its shareholding in the Tasmanian Electro Metallurgical Company (TEMCO) to GFG Alliance (GFG).

Premier Peter Gutwein said this was a very good outcome for Tasmania given TEMCO’s Bell Bay manganese alloy smelter plays an important role in the State’s economy, especially in northern Tasmania.

“As a major regional employer, the securing of the ongoing operation of the smelter and the site’s 250 jobs, will be very welcomed by TEMCO employees and the broader community,” he said.

“As we build ourselves out of the COVID-19 pandemic, it is crucial business confidence remains strong to secure ongoing investment in Tasmanian industry and jobs, and today’s announcement will support that.”

Minister for State Growth Michael Ferguson said the Tasmanian Liberal Government, through the Coordinator-General, worked hard last year to bring GFG to Tasmania to introduce a range of potential investment opportunities, including TEMCO.

“While the acquisition will require regulatory approvals and consents, we are pleased that GFG’s detailed due diligence has provided it with the confidence to invest in Tasmania, and we look forward to TEMCO remaining a key player in the Tasmanian economy employing a significant number of Tasmanians,” he said.

Minister for Resources and Energy Guy Barnett said it is clear that TEMCO will become a key component of the group’s steel making capability in Australia and globally.

“It is no surprise that Tasmania’s world leading renewable energy credentials were a key consideration, helping support GFG Alliance’s goal to be carbon neutral by 2030,” Mr Barnett said.

“The Government recognises the mining and mineral sector is a cornerstone of the Tasmanian economy, injecting billions into Tasmania and providing thousands of jobs, many in regional areas.”

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