The acquisition is in line with GFG Alliance’s transformation plan for its flagship Liberty OneSteel Whyalla steelworks in South Australia that is designed to optimise and expand production.
In August last year, the company acquired Australian mining and steel company Arrium, which includes manufacturing, distribution and recycling, Whyalla steelworks and mining divisions.
Located around 75km south-west of Sydney, the Tahmoor mine has an annual production output of around two million tonnes per annum.
GFG Alliance executive chairman Sanjeev Gupta 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.
“Through this purchase, we secure and de-risk an important feed for the Whyalla Steelworks.”
A major share of production from the Tahmoor mine is used for primary steelmaking in blast furnaces both in Australia and internationally.
The mine supplies coking coal to the Whyalla Steelworks.
GFG Alliance chief investment officer and Simec Mining CEO Jay Hambro said: “The Tahmoor operation is another good fit within SIMEC’s global portfolio allowing vertical integration for the Whyalla Steelworks and flows to the broader GFG international network.”
Subject to customary conditions, the closure of the transaction is expected to occur in the first quarter of this year.