The mine has been bought by UK billionaire Sanjeev Gupta’s GFG Alliance in a deal which has just won approval from state Resources Minister Don Harwin.

It was sold by Swiss mining giant Glencore, which had announced in June 2016 that it would close the mine by 2019 because of continued low coal prices.

That had caused some uncertain times for the Illawarra miners who travel to Tahmoor daily for work in the metallurgical coal pits.

But a few days into this year Mr Gupta announced he would snap up what Glencore didn’t want – for an undisclosed sum.

His group already owned South Australian diversified steelmaker Arrium (formerly OneSteel), making the coal mine a good fit.

On Friday SIMEC – GFG’s mining division – announced it had cleared the final hurdle in winning ministerial approval.

A bouyant Mr Gupta said the mine, which had been open since 1979, was highly regarded for being well run and producing quality coal.

“I am delighted to welcome the Tahmoor mine employees and surrounding community into our GFG family,” Mr Gupta said.

“The acquisition of the Tahmoor mine is an exciting step forward in our 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.

“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.”

Greensteel GFG’s strategy to recycle scrap into new steel using electric arc furnaces powered by renewable energy.

Owning mines allows a steelmaker to insulated from price volatility in coal and iron ore. Port Kembla’s BlueScope has been at the mercy of coal prices since it was established in 2002. 

nder the ownership of GFG’s SIMEC Mining division following Ministerial

approval.

The acquisition of the Tahmoor mine is an important element in GFG Alliance’s broader transformation plan

for its flagship Liberty OneSteel Whyalla Steelworks in South Australia that is designed to optimise and

expand production, thereby securing its long‐term sustainability.

The Tahmoor mine – which employs more than 300 people – is a coking coal operation situated around 75km

southwest of Sydney. Annual production is currently around two million tonnes per annum, the bulk of which

is high‐quality coking coal used for primary steel making in blast furnaces both in Australia and

internationally. The Tahmoor mine is an important supplier of coking coal to the Whyalla Steelworks.

GFG Alliance Executive Chairman, Sanjeev Gupta, said the well‐run asset was highly regarded in domestic

and international markets for its grade and quality.

SIMEC Mining Chief Operating Officer, Matt Reed, said this significant acquisition considerably expanded the

scope of the Mining business beyond the Middleback Ranges region.

“The inclusion of the Tahmoor coking coal mine into our operations represents an exciting opportunity for

our business,” Mr Reed said.

“We have commenced broadening our portfolio, making our business more robust and secure for the long‐

term.”